India Overtakes China as Leading Smartphone Manufacturer for the US Market: What This Means for Global Supply Chains

In a groundbreaking shift signaling the changing tides of global manufacturing, India has surpassed China as the top manufacturing hub for smartphones shipped to the United States. This milestone, reached in the second quarter of 2025, highlights how trade tensions, tariffs, and strategic corporate decisions are reshaping the global electronics supply chain.

According to data from Canalys, India’s share of US smartphone shipments skyrocketed from 13% in Q2 2024 to 44% in Q2 2025, a remarkable 240% growth within a year. Meanwhile, China’s share dramatically declined from 61% to 25% during the same period. This shift comes amid a largely stagnant US smartphone market, which grew by only 1% and shipped 27.1 million units total.

The major driver behind this transformation is Apple’s "China Plus One" manufacturing strategy. By ramping up its production capacity in India, Apple has significantly reduced its dependence on Chinese factories. CEO Tim Cook revealed that most iPhones sold in the US during the April-June 2025 quarter were manufactured in India, including all high-end Pro models. In the first half of 2025, iPhone production in India surged 53% year-over-year to reach nearly 24 million units.

While Apple remains the top smartphone brand in the US with a 49% market share in Q2 2025, it experienced an 11% decline in shipments. Samsung capitalized on the opportunity, growing its shipments by 38% primarily through its popular Galaxy A-series devices, closing in with a 31% market share.

Vietnam also emerged as a key player in this diversification of manufacturing, increasing its share from 24% to 30%, further underscoring the global rebalancing away from China. Companies are frontloading inventory and shifting operations to mitigate risks from potential tariff escalations, reflecting broader economic caution and geopolitical recalibration.

This pivotal moment in smartphone manufacturing not only highlights India’s ascent as a manufacturing powerhouse but also demonstrates how global supply chains are evolving in response to complex trade environments. For tech companies and consumers alike, these changes promise to influence product availability, competitive dynamics, and market strategies in the years ahead.