India Becomes Leading Source of Smartphone Shipments to the US in Q2 2025

India has overtaken China as the top smartphone supplier to the US market in quarter 2 2025, with its export share jumping from 13 percent to 44 percent year-over-year.

This dramatic shift reflects ongoing trade tensions and manufacturers’ strategic pivot toward supply chain diversification, primarily led by Apple’s expansion of iPhone production in India.

India has surpassed China to become the leading exporter of smartphones to the United States (US) for the first time in the second quarter of 2025. According to a market report published on July 21, 2025, this reflects a significant shift in global supply chain dynamics, largely influenced by ongoing geopolitical tensions and uncertainty surrounding US–China tariff negotiations.

As per data, India’s smartphone shipments rose by seven percent year-on-year in Q2 2025, reaching 39 million units. This uptick was largely driven by new product launches during the quarter, following a slow Q1 when vendors exercised caution due to high inventory levels. The market rebounded despite typical seasonal sluggishness and challenges, including extreme weather, geopolitical tensions, and uncertainty surrounding US tariffs.

Mobile phone brands such as Vivo (excluding its sub-brand iQOO) led the market with 8.1 million units shipped, capturing a 21 percent share. Samsung ranked second with 6.2 million units and a 16 percent share. OPPO (excluding mobile phone brand OnePlus) secured third place with five million units, narrowly surpassing Xiaomi, which also recorded five million shipments. Realme rounded out the top five with 3.6 million units.

Realignment of global smartphone manufacturing hubs

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The decline in China’s share of US-bound smartphone shipments—from 61 percent in Q2 2024 to just 25 percent in Q2 2025—marks a steep drop and underscores the impact of trade friction and risk diversification strategies. In contrast, India’s share has surged to 44 percent, up from a modest 13 percent in the same period last year. Vietnam has also seen a notable increase, rising from 24 percent to 30 percent, reinforcing its position as the third-largest source of smartphone imports to the US.

This reshaping of supply chains demonstrates a broader strategic pivot by global smartphone manufacturers to reduce overreliance on China by strengthening production bases in alternative locations such as India and Vietnam.

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Apple leads India’s smartphone export momentum

Global electronics brand Apple has been the key driver behind India’s rising smartphone exports. The tech giant has expanded its manufacturing footprint in India under its ‘China Plus One’ strategy. In 2025, a substantial portion of Apple’s iPhone 16 Pro models were assembled in India and exported to the US, contributing heavily to the country’s export growth.

It must be noted that Apple continues to maintain a sizable manufacturing base in China to meet global demand for its premium product lines, suggesting a hybrid approach to global production diversification.

Other brands expand cautiously

Other electronic brands such as Samsung and Motorola have also stepped up exports from India, albeit more gradually. While Motorola still relies primarily on its Chinese facilities, Samsung continues to base the bulk of its production in Vietnam. Nonetheless, both companies have begun leveraging India’s improving manufacturing ecosystem as part of their long-term regional diversification efforts.

Source: Canalys Smartphone Market Pulse: Q2 2025

*Note: vivo excludes iQOO. OPPO excludes OnePlus. Xiaomi estimates include sub-brand POCO. Percentages may not add up to 100 percent due to rounding.

Despite this strategic reshuffling, overall US smartphone shipments grew by only 1 percent year-on-year in Q2 2025, indicating a relatively flat demand environment amid inventory adjustments ahead of possible tariff changes.

Tamil Nadu’s role in powering India’s smartphone export growth

India’s growing prominence in global smartphone exports, particularly to the US, has been supported by state-level industrial efforts, most notably in Tamil Nadu. The southern state has emerged as a critical node in Apple’s India-based manufacturing and component supply chain.

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According to T. R. B. Rajaa, Tamil Nadu’s Minister for Industries, Investment Promotion, and Commerce, the state’s manufacturing infrastructure and skilled workforce have made it an attractive destination for electronics and component production.

To consolidate this position, the state unveiled the Tamil Nadu Electronics Components Manufacturing Scheme in April 2025. Designed to complement the central government’s incentive structure, the scheme aims to attract INR 300 billion (US$3.43 billion) in investments and generate approximately 60,000 jobs by providing competitive state-level benefits.

A growing cluster of Apple suppliers in India

Tamil Nadu hosts several of Apple’s key suppliers, including Foxconn, Pegatron (now under Tata Electronics), Tata Electronics, Jabil, Salcomp, Corning, Lingyi iTech, and ON Semiconductor. These firms have established operations in key industrial corridors such as Sriperumbudur, Oragadam, Kancheepuram, Hosur, and Tiruchirapalli, benefiting from the state’s special economic zones (SEZ) and logistics networks.

Foxconn, in particular, manufactures iPhones in Tamil Nadu for export to the US, positioning the state as a vital link in Apple’s global supply chain. Component makers such as Corning (Gorilla Glass) and Salcomp (smartphone chargers) also contribute to the state’s growing export capabilities.

Strategic investment focus and future growth

The state minister has emphasized that Tamil Nadu’s strategy prioritizes high-value and strategically relevant investments. He added that the state evaluates contributions to the local supply chain and potential for ecosystem development. 

The state’s broader objective is to move up the value chain by encouraging local production of complex components such as camera and display modules, Li-ion cells, sensors, HDI/Flexi PCBs, and SMD passive components. Tamil Nadu recorded its highest-ever electronics exports of US$14.65 billion in FY2025, representing over 41 percent of India’s total electronics exports. The state now targets US$50 billion in exports within the next three to four years.

Inclusive growth and workforce development

Tamil Nadu’s manufacturing growth is also underpinned by its focus on inclusive development. The electronics sector employs a significant number of women, making it a key area for social and economic empowerment.

By combining industrial growth with social responsibility and long-term infrastructure planning, Tamil Nadu is positioning itself as a global hub not just for electronics assembly but for end-to-end high-tech manufacturing—solidifying its role in India’s emergence as a dominant force in global smartphone exports.

Conclusion

India’s rise as the leading smartphone exporter to the US marks a pivotal shift in global supply chain dynamics. This shift highlights the country’s expanding capabilities in high-tech manufacturing and showcases the impact of coordinated strategic initiatives at both the national and state levels.

Tamil Nadu has driven much of this transformation through focused industrial policies, while Apple’s expanded production and the entry of key component manufacturers have further accelerated the shift. As global brands adopt a ‘China Plus One’ strategy, India strengthens its position as a major player in the global electronics manufacturing ecosystem.

(US$1 = INR 87.4)

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