India has reached a significant milestone in the global tech supply chain, overtaking China as the largest smartphone supplier to the United States. This transition, marked in the second quarter of 2025, reflects a seismic shift in global manufacturing trends driven by geopolitical tensions and Apple’s evolving production strategies.

Key Highlights

India became the leading supplier of smartphones to the US in Q2 2025.

Indian smartphone shipments to the US surged 240% year-over-year.

India now accounts for 44% of US-bound smartphones; China dropped to 25%.

Apple’s accelerated supply chain transition is the primary driver.

Apple has started assembling even high-end Pro models in India.

India’s Rise as a Manufacturing Powerhouse

According to research firm Canalys (now part of Omdia), India-manufactured smartphone shipments to the US rose by an astonishing 240% in Q2 2025. This surge has elevated India’s share of US smartphone imports to 44%, compared to a mere 13% during the same quarter in 2024. Meanwhile, China’s share plummeted to 25%, down from a commanding 61% in the previous year.

The Apple Factor

The dramatic reshuffling of supply chains owes much to Apple. The tech giant has been steadily building its manufacturing capabilities in India through partners like Foxconn, Wistron, and Pegatron. Apple’s strategy to reduce its dependence on Chinese manufacturing—fueled by ongoing trade tensions and supply disruptions—has positioned India as a vital alternative.

“India became the leading manufacturing hub for smartphones sold in the US for the very first time in Q2 2025, largely driven by Apple’s accelerated supply chain shift to India amid an uncertain trade landscape between the US and China,” said Sanyam Chaurasia, Principal Analyst at Canalys.

Initially focused on standard iPhone models like the iPhone 15 and iPhone 16, Apple has now begun limited production of its iPhone 16 Pro models in India. While China still holds the lion’s share of Pro production, the balance is shifting steadily.

Other Brands Following the Trend

Though Apple leads this transition, it is not alone. Brands like Samsung and Motorola are also increasing their reliance on Indian facilities for manufacturing. However, their impact is comparatively modest. Samsung continues to depend largely on Vietnam for its smartphone output, while Motorola, although increasing its Indian production, still relies heavily on China.

Supply Chain Diversification Amid Global Tensions

The shift is not solely about cost. With US-China relations strained by tariffs and volatile trade policies, smartphone makers are rapidly diversifying their supply chains to mitigate risks. Canalys notes that many vendors are now front-loading inventory and rethinking sourcing strategies to avoid potential disruptions.

India’s improving infrastructure, favorable government policies like the Production Linked Incentive (PLI) scheme, and a growing skilled workforce have helped bolster its appeal as a global manufacturing base, even for premium devices.

Limited Growth in US Market, But Big Shifts in Supply

Interestingly, the surge in Indian smartphone imports coincides with relatively flat growth in the US smartphone market. In Q2 2025, overall market growth was just 1%. Apple saw an 11% decline in US shipments, while Samsung recorded a robust 38% growth. Motorola posted a modest 2% gain, with Google and TCL completing the top five.

Despite subdued consumer demand, the supply chain dynamics tell a story of strategic repositioning, with India at the center of this transformation.

Conclusion

India’s emergence as the top smartphone supplier to the US marks a defining moment in the global tech landscape. Powered by Apple’s calculated manufacturing shift and supported by favorable economic and political conditions, India is no longer just an alternative to China—it is rapidly becoming a preferred destination for high-end tech manufacturing. As the trend continues, India’s role in shaping the future of the global smartphone industry is set to grow even further.