India Dethrones China: Becomes Top Smartphone Supplier to the US for the First Time
In a massive shake-up of global electronics manufacturing, India has officially overtaken China as the leading smartphone supplier to the United States. According to new data from Canalys, India’s share of smartphone shipments to the US skyrocketed to 44% in Q2 2025—up from just 13% a year earlier. In contrast, China’s share plunged from 61% to 25% over the same period.
This marks the first time India has surpassed China in this space, a shift fueled by deepening trade tensions and strategic manufacturing pivots by major tech players.
Apple’s Exit from China Speeds Up India’s Rise
The biggest driver behind India’s explosive growth is Apple’s aggressive “China Plus One” strategy. As geopolitical risks mount, Apple has leaned heavily into its India operations, now producing every iPhone model—including high-end Pro versions—within the country.
In fact, Apple CEO Tim Cook previously confirmed that a majority of iPhones sold in the US during the April–June quarter of 2025 were made in India. According to Canalys, iPhone production in India jumped 53% year-over-year in H1 2025, hitting 23.9 million units.
“Apple has scaled up its production capacity in India over the last several years and has opted to dedicate most of its export capacity there to supply the US market,” said Sanyam Chaurasia, Principal Analyst at Canalys.
US Market Stays Flat, But Samsung Gains Ground
Despite India’s rising role in Apple’s supply chain, the company’s US performance dipped in Q2 2025. iPhone shipments fell 11% year-over-year to 13.3 million units. Samsung seized the moment, growing 38% with 8.3 million units shipped, driven by strong demand for its Galaxy A-series.
Apple remains the top smartphone brand in the US with a 49% market share, but Samsung is now close behind at 31%.
The US smartphone market overall saw only 1% growth year-over-year, reaching 27.1 million units, as inflation and economic uncertainty weighed on consumer spending. Analysts also noted that vendors were frontloading inventory to hedge against potential tariffs, widening the gap between shipments and actual sales.
Vietnam and India: Big Winners in Supply Chain Realignment
Vietnam also saw gains, increasing its share of US smartphone exports from 24% to 30%. But India is clearly the biggest winner, emerging as the top choice for manufacturers looking to reduce dependency on China.
This dramatic shift signals a new era in global supply chains—with India firmly positioned as a rising force in high-tech manufacturing.
