India's Emergence as a Leading Smartphone Supplier to the US
For the first time, India has overtaken China as the leading supplier of smartphones to the United States in the June quarter. This shift is significantly influenced by Apple's strategic decision to expedite the relocation of iPhone assembly operations to India from China. The move is a response to tariff uncertainties under the Trump administration.
Key Factors Behind the Shift
- Apple's Supply Chain Restructuring:
The uncertain trade negotiations between Washington and Beijing have prompted Apple to restructure its supply chain, favoring India as a manufacturing hub. - Decline in China-assembled Smartphones:
The share of US smartphone shipments assembled in China fell from 61% to 25% within a year, with India capturing most of this decline.
Statistics and Impact
- Surge in India-made Smartphone Shipments:
Shipments of smartphones from India to the US increased by 240% year-on-year, comprising 44% of handsets imported into the US in Q2 2025, compared to 13% the previous year. - US Smartphone Shipments Growth:
Despite tariff concerns, US smartphone shipments grew by 1% year-on-year in the June quarter.
Manufacturing Dynamics
- Apple's China Plus One Strategy:
While Apple scaled up supply from India, including for its complex Pro models, it still relies on Chinese bases for increased supply. However, India became the largest supplier of base iPhone models to the US in the June quarter. - Other Companies:
Samsung and Motorola have also increased their handset supplies from India, though at a slower pace compared to Apple. Motorola maintains its core manufacturing in China, while Samsung primarily produces in Vietnam.