Indian employees assembling a cell phone
London, UK – In a landmark shift in global trade dynamics, India has overtaken China to become the largest exporter of smartphones to the United States, marking the first time China has relinquished its long-held dominance in the American mobile device market.
According to a report released Monday by research firm Canalys, smartphones manufactured in India accounted for 44% of all U.S. smartphone imports in the second quarter of 2025, a dramatic increase from just 13% during the same period in 2024. In contrast, China’s share has plummeted to 25%, a steep decline from 61% last year, pushing it to third place, behind Vietnam
The 240% year-on-year growth in India-made smartphone exports to the U.S. is primarily attributed to Apple’s accelerated shift in manufacturing away from China, amid escalating trade tensions and economic uncertainty between Washington and Beijing.
“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 U.S. market so far in 2025,” said Sanyam Chaurasia, principal analyst at Canalys. He noted, however, that Apple remains “dependent” on its established manufacturing bases in China, even as its long-term strategic orientation shifts toward diversification.
The changing trade landscape is heavily influenced by the tariff policies introduced by U.S. President Donald Trump, which have targeted Chinese imports with sweeping levies. Although smartphones and other semiconductor-based electronics have been largely spared from the harshest tariffs, Apple CEO Tim Cook revealed in May that iPhones made in China still face a minimum 20% tariff.
Cook further stated that he expects “the majority of iPhones sold in the U.S. will have India as their country of origin” moving forward.
Shifting Supply Chains
The sharp decline in China’s dominance is part of a broader trend of multinational companies diversifying their supply chains away from the world’s second-largest economy. This transition has been accelerated by a combination of geopolitical tensions, rising tariffs, and lessons learned during the COVID-19 pandemic, which exposed the vulnerabilities of over-reliance on Chinese manufacturing hubs.
India and Vietnam, with their competitive labor costs, expanding infrastructure, and more favorable diplomatic ties with the West, have emerged as viable alternatives for global tech giants.
“The uncertain outcome of negotiations with China has accelerated supply chain reorientation,” Canalys analysts noted, referencing the ongoing U.S.–China trade talks taking place this week in Sweden, where negotiators are working to extend a 90-day tariff truce agreed in May.
Despite the temporary easing of tariffs, the volatility of U.S.–China trade relations continues to compel companies like Apple to hedge their manufacturing risks by moving operations to India, which has also been aggressively courting foreign investment in its electronics sector.
Implications for Global Trade
This development marks a significant milestone in the global economic realignment currently underway, where India is positioning itself as a central node in global manufacturing networks. It also reflects the tangible consequences of U.S. trade policy, which aims to weaken China’s industrial grip and revive domestic manufacturing by making foreign goods less competitive.
For China, the shift represents a major setback in its longstanding status as the world’s factory floor. For India, it underscores the country’s growing importance on the global stage—not just as a vast consumer market, but as a rising manufacturing powerhouse capable of reshaping global supply chains.
My News Ghana will continue to monitor developments from the U.S.–China trade talks in Sweden and provide further analysis on how the shifting manufacturing landscape may impact African economies and global trade flows.
Source: My News Ghana
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