According to a report by Canalys, India surpassed China in the second quarter (Q2) 2025-26 to become the top smartphone supplier to the US for the first time. This development was largely driven by Apple’s accelerated shift of iPhone assembly operations from China to India, amid ongoing trade tensions and tariff uncertainties under the current US administration.
The lack of clarity in trade negotiations between Washington and Beijing has hastened Apple’s efforts to restructure its supply chain. As a result, the share of US smartphone shipments assembled in China dropped to 25 per cent in Q2, down from 61 per cent a year earlier, with India absorbing most of the decline.
The report mentioned that smartphone shipments from India to the US grew by 240 per cent year-on-year and accounted for 44 per cent of the US smartphone imports in Q2 2025-26, up significantly from 13 per cent during the same period last year. Canalys noted that overall US smartphone shipments rose 1 per cent year-on-year during the quarter, as vendors frontloaded inventory in anticipation of potential tariff hikes.
While Apple has increased its supply of Pro models from India as part of its China Plus One strategy, it continues to depend on Chinese manufacturing bases to meet high demand for these devices in the US. However, for base iPhone models, India emerged as the largest supplier to the US during the quarter. Apple has allocated a substantial portion of its export capacity in India to serve the US market in 2025.
Samsung and Motorola also increased their smartphone exports from India, though their expansion has been slower and smaller in scale compared to Apple.
As per Canalys data, iPhone exports from India to the US peaked in March, just before the US announced reciprocal tariffs on several trade partners, including India. These tariffs were eventually postponed to August 1, 2025.
