India overtakes China to become world's top smartphone maker for the US

Apple assembled $22 bn worth of iPhones in India over the 12 months ending in March 2025, representing a nearly 60% increase year-on-year, with the majority manufactured at Foxconn's facility

India has overtaken China to become the leading exporter of smartphone devices sold in the United States, driven by Apple Inc’s decision to scale up iPhone assembly in the country. Shipments from India accounted for 44 per cent of the US market in the quarter ending June 2025, according to data from Canalys.

 

Vietnam, home to most of Samsung Electronics Co’s production, ranked second. In contrast, China’s share of estimated shipments plummeted from over 60 per cent a year ago to just 25 per cent.

 

Apple’s India manufacturing push

 

The shift is a result of Apple increasing its manufacturing capacity in India, alongside broader efforts by smartphone makers to “frontload device inventories amid tariff concerns,” Canalys researchers wrote. The number of smartphones manufactured in India more than tripled compared to the same period last year.

 

Although Apple’s iPhone shipments to the US fell by 11 per cent, this decline was attributed to earlier-than-usual bulk shipments.

 

India-made iPhone output rises to $22 bn 

Apple assembled iPhones worth $22 billion in India in the 12 months ending March, marking a nearly 60 per cent rise from the previous year. Most of these devices were produced at Foxconn Technology Group’s facility. Tata Group’s electronics arm, which recently acquired Wistron Corp and oversees Pegatron Corp’s operations, has also become a major supplier.

 

Trump seeks manufacturing jobs in US 

Apple and other technology companies have been gradually moving production away from China to reduce risks associated with tariffs and rising geopolitical tensions. India and Vietnam have become prominent alternatives in this strategy. This shift has drawn criticism from US President Donald Trump, who has been urging firms to bring manufacturing jobs back to the United States. Despite its global diversification, Apple continues to manufacture most of its iPhones in China and has no smartphone production in the US. However, the company has committed to hiring more domestically and investing $500 billion in the US over the next four years.

 

China disrupts Apple’s India expansion efforts 

Apple’s shift towards India has not gone unnoticed by Chinese authorities. The Chinese government has reportedly taken steps to undermine Apple’s competitive advantage abroad. Around a year ago, it delayed approvals for machinery Apple needed to import for iPhone production in India.

 

In a more recent move, Chinese Customs indefinitely withheld machines required for retrofitting assembly lines to manufacture the forthcoming iPhone 17. Additionally, Beijing pressured Foxconn to withdraw over 300 Chinese engineers and technicians from its facilities in India. These experts were initially deployed to assist with technology transfer and worker training.