India Becomes Top Smartphone Supplier to the US! India becomes the largest smartphone supplier to the US! According to Canalys, India overtook China as the primary exporter of smartphones to the US in the second quarter of 2025. India accounted for 44% of US smartphone imports, up from 13% a year ago, while China’s share fell from 61% to 25% in the same period.
Apple at the Forefront of Shift
Apple has ramped up its production in India as part of its “China Plus One” strategy, reducing its reliance on Chinese facilities. Canalys reported that India’s exports to the US grew 240% year-on-year, driven primarily by iPhone shipments. Apple has begun manufacturing models like the iPhone 16 Pro in India, while some high-end versions are made in China.
Other Countries Also Their Share!
Vietnam increased its share to 30%, up from 24% a year ago, supported by Samsung’s expanded production in the country. Meanwhile, smaller vendors struggled to gain traction, as no other brand exceeded 3% of the US market share in Q2 2025.
| Vendor | Shipments (Million) | Market Share | Q2 2024 Shipments (Million) | Q2 2024 Market Share | Annual Growth |
|---|---|---|---|---|---|
| Apple | 13.3 | 49% | 14.9 | 56% | -11% |
| Samsung | 8.3 | 31% | 6.0 | 23% | 38% |
| Motorola | 3.2 | 12% | 3.1 | 12% | 2% |
| 0.8 | 3% | 0.7 | 3% | 13% | |
| TCL | 0.7 | 3% | 1.0 | 4% | -23% |
| Others | 0.7 | 3% | 1.0 | 2% | -34% |
| Total | 27.1 | 100% | 26.7 | 100% | 1% |
US Smartphone Shipments Remain Flat
Total smartphone shipments in the US reached 27.1 million units in Q2 2025, representing a 1% growth year over year.
- Apple shipped 13.3 million units, down 11% year over year, but held 49% market share.
- Samsung shipped 8.3 million units, up 38%, capturing 31% share.
- Motorola delivered 3.2 million units, a 2% increase.
- Google and TCL accounted for 3% share each, with 0.8 million and 0.7 million units, respectively.
Impact of Tariffs
Canalys noted that brands, especially Apple, frontloaded shipments to prepare for potential US tariffs on imported devices. Uncertainty around future trade policies encouraged manufacturers to expand production in India to reduce risk. Despite these adjustments, consumer demand remained muted.
India’s rise reflects a major shift in smartphone supply chains toward diversification away from China. Analysts caution that long-term growth depends on investment and stable trade conditions, as recent gains were largely driven by short-term inventory strategies.
Tamil Nadu Drives India’s Smartphone Export Surge
India’s growing prominence in global smartphone exports, particularly to the US, has been supported by state-level industrial efforts, most notably in Tamil Nadu. The southern state has emerged as a critical node in Apple’s India-based manufacturing and component supply chain.
According to T. R. B. Rajaa, Tamil Nadu’s Minister for Industries, Investment Promotion, and Commerce, the state’s manufacturing infrastructure and skilled workforce have made it an attractive destination for electronics and component production.
To consolidate this position, the state unveiled the Tamil Nadu Electronics Components Manufacturing Scheme in April 2025. Designed to complement the central government’s incentive structure, the scheme aims to attract INR 300 billion (US$3.43 billion) in investments and generate approximately 60,000 jobs by providing competitive state-level benefits.
A growing cluster of Apple suppliers in India
Tamil Nadu hosts several of Apple’s key suppliers, including Foxconn, Pegatron (now under Tata Electronics), Tata Electronics, Jabil, Salcomp, Corning, Lingyi iTech, and ON Semiconductor. These firms have established operations in key industrial corridors such as Sriperumbudur, Oragadam, Kancheepuram, Hosur, and Tiruchirapalli, benefiting from the state’s special economic zones (SEZ) and logistics networks.
Foxconn, in particular, manufactures iPhones in Tamil Nadu for export to the US, positioning the state as a vital link in Apple’s global supply chain. Component makers such as Corning (Gorilla Glass) and Salcomp (smartphone chargers) also contribute to the state’s growing export capabilities.
Strategic investment focus and future growth
The state minister has emphasized that Tamil Nadu’s strategy prioritizes high-value and strategically relevant investments. He added that the state evaluates contributions to the local supply chain and potential for ecosystem development.
The state’s broader objective is to move up the value chain by encouraging local production of complex components such as camera and display modules, Li-ion cells, sensors, HDI/Flexi PCBs, and SMD passive components. Tamil Nadu recorded its highest-ever electronics exports of US$14.65 billion in FY2025, representing over 41 percent of India’s total electronics exports. The state now targets US$50 billion in exports within the next three to four years.
Inclusive growth and workforce development
Tamil Nadu’s manufacturing growth is also underpinned by its focus on inclusive development. The electronics sector employs a significant number of women, making it a key area for social and economic empowerment.
By combining industrial growth with social responsibility and long-term infrastructure planning, Tamil Nadu is positioning itself as a global hub not just for electronics assembly but for end-to-end high-tech manufacturing—solidifying its role in India’s emergence as a dominant force in global smartphone exports.
