India emerged as the top source of smartphones shipped to the United States in the second quarter of 2025, overtaking China for the first time. This significant development comes as Apple accelerates its efforts to diversify manufacturing away from China amid increasing geopolitical and trade tensions.
Smartphone: India’s Share Surges from 13% to 44% in One Year
According to data released by Canalys, smartphones assembled in India made up 44% of the 27.1 million units shipped to the US in Q2 2025 — a sharp rise from just 13% during the same period in 2024. Meanwhile, China’s share plummeted to 25%, down from 61% a year ago.
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Apple, Samsung, and Motorola Boost India-Based Production
The volume of smartphones shipped from India to the US jumped by 240% year-on-year, largely driven by Apple. Samsung and Motorola also contributed to this surge by ramping up their India-based production to cater to US demand.
Vietnam, where Samsung has significant manufacturing operations, ranked second with a 30% share of shipments to the US.
Apple Diversifies to Avoid Tariff Risks
Canalys principal analyst Sanyam Chaurasia attributed the shift to Apple’s ongoing move to reduce its dependence on Chinese manufacturing. This strategy aims to buffer against the threat of US tariffs. The company has notably increased its India-based production in the past year, even beginning assembly of the iPhone 16 Pro models in India. However, large-scale production for the US market still relies on Chinese facilities.
Overall US Smartphone Shipments See Minimal Growth
Despite the manufacturing shift, overall smartphone shipments to the US grew by only 1% year-on-year. Apple’s shipments declined by 11% to 13.3 million units. In contrast, Samsung experienced strong growth, with shipments rising 38% to 8.3 million units, driven by its Galaxy A-series.
Senior Canalys analyst Runar Bjorhovde noted that Apple had built up inventory at the end of Q1 and attempted to maintain that level in Q2. However, he emphasized that “the modest growth despite frontloaded inventory reflects weak consumer demand amid economic uncertainty.”
US Political Pushback on Apple’s India Production
Apple’s increasing investment in India has not gone unnoticed politically. Former US President Donald Trump has openly criticized the move, warning that iPhones manufactured outside the United States could face a 25% import tariff. In May, Trump reportedly told Apple CEO Tim Cook, “We are not interested in you building in India.”
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