India has claimed the top spot as the leading exporter of smartphones to the United States for the first time, according to a new report by market research firm Canalys.
The shift marks a major realignment in global tech manufacturing, largely driven by Apple's ongoing effort to diversify its supply chain away from China.
In the second quarter of 2025, smartphones assembled in India made up 44 percent of US imports — more than triple the 13 percent recorded during the same period last year.
This surge represents a staggering 240 percent year-on-year increase in India's smartphone export volume. By contrast, China's share of US imports plummeted to just 25 percent, a sharp decline from 61 percent the year before.
Vietnam also surpassed China, capturing 30 percent of the US market.
The reshuffling is attributed primarily to Apple's accelerated transition of iPhone production to India under its "China Plus One" strategy, aimed at reducing dependency on China amid an increasingly volatile trade environment.
"Apple has scaled up its production capacity in India over the last several years... and has opted to dedicate most of its export capacity in India to supply the US market so far in 2025," said Canalys principal analyst Sanyam Chaurasia.
Although Apple continues to rely on its long-established Chinese facilities — particularly for high-end Pro model components — the company has intensified assembly operations in India, with the iPhone 16 now being produced there.
CEO Tim Cook recently affirmed the shift, stating he expects the majority of iPhones sold in the US this year to be made in India.
Apple is not alone in this pivot. Other smartphone makers, including Samsung and Motorola, are also increasing US-targeted production in India.
However, their transition has been slower and on a much smaller scale. The reshoring effort comes in response to mounting tariff threats from Washington.
While some Apple products have been temporarily exempt from President Donald Trump's sweeping "reciprocal tariffs", Cook was warned in May that a 25 percent tariff could still be applied to devices made outside the US — India included.
Trade analysts have cautioned that relocating full-scale iPhone production to the US could significantly drive up prices.
