India has surpassed China to become the largest source of smartphones shipped to the United States, marking a major shift in global electronics manufacturing amid Apple’s diversification move, according to research firm Canalys.
The share of US smartphone shipments assembled in China fell from 61 percent in the second quarter of 2024 to 25 percent in the second quarter of 2025.
India picked up most of the decline, with Indian-made smartphone volume growing 240 percent year-on-year.
It makes India’s share in US-imported devices jump to 44 percent in the second quarter from just 13 percent one year ago.
"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.
Moreover, the share of Vietnam in exports to the US stood at 30 percent in the past three-month period, exceeding that of China too.
However, the market only grew 1 percent despite vendors front-loading inventory, indicating tepid demand in an increasingly pressured economic environment and a widening gap between sell-in and sell-through, said Runar Bjorhovde, senior analyst at Canalys.
The imposition of U.S. tariffs has prompted smartphone makers to reorganize their supply chains to avoid higher import costs and protect their margins.
China, a major hub for electronics manufacturing, has been targeted by significant tariffs, pushing hardware makers to explore other Asian countries to maintain low production costs.
In response to tariffs, Apple earlier this year sought to make most of its iPhones sold in the United States at factories in India.
But the move drew criticism from U.S. President Donald Trump, who threatened additional tariffs on the Cupertino-based company if it did not produce domestically.
Apple suppliers, however, seemed unaffected by the news. Aac Technologies (2018) rose by 3.8 percent and Sunny Optical Technology (2382) climbed 1.17 percent yesterday.
BYD Electronic International (0285) advanced by 1.16 percent and Cowell E (1415) also increased by 2.83 percent.
STAFF REPORTER AND REUTERS
