In a landmark shift that redefines global electronics manufacturing, India has officially surpassed China to become the leading country of origin for smartphones sold in the United States. This significant development is largely driven by Apple's aggressive acceleration of its iPhone production in India, a strategic pivot aimed at diversifying its supply chain and mitigating geopolitical and tariff risks.
According to recent data from Canalys, in the second quarter of 2025, India accounted for an impressive 44% of all smartphone imports into the US, a dramatic increase from just 13% a year ago. During the same period, China's share plummeted from over 60% to a mere 25%, indicating a fundamental reorientation of the supply chain. Apple CEO Tim Cook confirmed this trend, stating that "a majority of iPhones sold in the US" during the April-June quarter originated from India.
This rapid expansion of "Made in India" iPhones is a direct result of Apple's "China Plus One" strategy, initiated years ago but significantly ramped up recently. The move is fueled by multiple factors, including escalating trade tensions between the US and China, the imposition of tariffs on Chinese-made goods, and the need for greater supply chain resilience following pandemic-related disruptions. While Chinese exports face a 20% tariff in the US, Indian-made products enjoy a more favorable tariff regime, offering a considerable cost advantage to Apple.
Currently, India accounts for approximately 20% of Apple's global iPhone production capacity, a figure that includes high-end models like the iPhone 16 Pro. The volume of smartphones manufactured in India and destined for the US market has quadrupled year-on-year, showcasing the speed and scale of this transition. Major contract manufacturers like Foxconn and Tata Electronics have heavily invested in expanding their facilities in India to meet this surging demand.
While President Donald Trump has expressed a desire for manufacturing to return to the US, the economic realities of large-scale smartphone production have pushed companies like Apple towards countries like India and Vietnam (which handles much of Samsung's production). This shift not only helps Apple circumvent tariffs but also positions it favorably in one of the world's fastest-growing smartphone markets.
The ascent of India as a major electronics manufacturing hub represents a pivotal moment in global trade. It underscores the profound impact of geopolitical dynamics and economic incentives on corporate supply chain decisions, heralding a new era where "Made in India" increasingly becomes synonymous with the iconic iPhone in the American market.
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