Blitz Bureau
India has overtaken China to become the top exporter of smartphones to the US, according to research firm Canalys, reflecting the shift in manufacturing supply chain away from Beijing amid tariff-fuelled uncertainty, shows a report by CNBC.
Smartphones assembled in India accounted for 44 per cent of US imports of those devices in the second quarter, a significant increase from just 13 per cent in the same period last year. Total volume of smartphones made in India soared 240 per cent from a year earlier, Canalys said.
In contrast, the share of Chinese smartphone exports to the US shrank to 25 per cent in the quarter ended June, from 61 per cent a year earlier, Canalys data released last week showed. Vietnam’s share of smartphone exports to the US was also higher than that of China at 30 per cent.
The surge in shipments from India was primarily driven by Apple’s accelerated shift toward the country at a time of heightened trade uncertainty between the US and China, said Sanyam Chaurasia, principal analyst at Canalys. This is the first time India exported more smartphones to the US than China.
Apple has reportedly been speeding up its plans to make most of its iPhones sold in the US at factories in India this year, with the aim of manufacturing around a quarter of all iPhones in the country in the next few years.
Trump has threatened Apple with additional tariffs and urged the company’s CEO Tim Cook to make iPhones domestically, a move experts have said would be nearly impossible as it would push iPhone prices higher.
While many of Apple’s core products, including iPhones and Mac laptops, have received exemptions from Trump’s “reciprocal tariffs,” officials have warned that it could be a temporary reprieve.
Its global peers, Samsung Electronic and Motorola, have also been striving to move assembly for US-bound smartphones to India, though their shift has been significantly slower and is limited in scale compared with Apple, according to Canalys.
Last-mile assembly
Many global manufacturers have been increasingly shifting their final assembly to India, allocating more capacity in the South-Asian nation to serve the US market, said Renaud Anjoran, executive vice president of Agilian Technology, an electronics manufacturer in China.
The Guangdong-based company is now renovating a facility in India with plans to move part of its production to the country. “The plan for India is moving ahead as fast as we can,” Anjoran said. The company expects to begin trial production runs soon before ramping up to full-scale manufacturing.
That said, yield rates — an indicator of manufacturing efficiency — are lower when manufacturing in India and Vietnam, compared with China, Anjoran said, citing quality-related incidents linked to inexperienced workers as well as logistics delays.
While shipments, which represent the number of devices sent to retailers do not reflect final sales, they are a proxy for market demand.
Overall, iPhone shipments to the US declined by 11 per cent year on year to 13.3 million units in the second quarter, reversing the 25.7 per cent growth in the prior quarter, according to Canalys. Globally, iPhone shipments declined 2 per cent from a year earlier to 44.8 million units in the April to June quarter, according to Canalys.
Shares of Apple have tumbled 14 per cent this year, partly on concerns over its high exposure to tariff uncertainty and intensifying competition in smartphones and artificial intelligence sector.
While the company has begun assembling iPhone 16 Pro models in India, it still relies heavily on China’s more mature manufacturing infrastructure to meet US demand for the premium model, Canalys said.
In April, Trump imposed a 26 per cent tariff on imports from India, much lower than the triple-digit tariffs on China at the time, before pausing those duties until an August 1 deadline.