India Beats China in US Smartphone Exports as Output Surges 240%

• India became the top U.S. smartphone supplier in Q2 2025, capturing 44% of imports.
• Apple’s accelerated shift and strong exports from Samsung & Motorola powered a 240% surge.
• Policy support via PLI, export incentives, and production scale-up driven the transformation.

In the second quarter of 2025, exports from India grew by 240% year-on-year, as more than half of the world's smartphones are produced in China, and companies such as Apple are still producing in a foreign country, but through Indian contract manufacturers, so the growth is from Apple shifting production to India for less costs and proximity. Research firm Canalys stated that in Q2 “Made-in-India” smartphones accounted for 44% of U.S. Smartphone import value, up from 13% a year earlier, while China's share was cut from 61% to 25%.

U.S. smartphone market growth is stagnant, up just one percent year-on-year, however vendors built up inventory with worries of tariffs and like accelerations in Apple iPhone production is shifting the flow of smartphones. Apple not only has its iPhone business in India, but all of the contract factories Foxconn, Tata are now producing smartphones there.

Also Read: India Supplies 1 in 3 Smartphones to US Amid Apple Shift

In addition to Samsung and Motorola, other big mobile phone OEMs also started exporting in 2021-2022 from India: Samsung exports have recently increased 38% y/y while Moto with a lot of help from Dixon Technologies has significantly raised volumes when it sent more than 1.6 million units to the U.S. by May 2025.

This sudden flurry of activity stemmed from increased U.S.-China trade tensions. Ex-President Donald Trump even warned of potential 25% tariffs on foreign-assembled iPhones, aimed squarely at Apple’s India-assembled units. Regardless of the threats as for tariffs, Apple is pursing its India plans, and demonstrating India’s increasing importance to a future global strategy.

India's PLI scheme, supportive policy framework, and rising investments have cemented India's position as a global manufacturing hub. For example, the country exported more than US $24 billion worth of smartphones in FY25, surpassing the usual suspects of exports like petroleum products and diamonds. India's production units have grown from 2 units in 2014–15 to 300 by 2024–25, driving exports up 127× over the last three years.

The momentum from these exports puts India in a manner to question the long-standing dominance of China in electronics manufacturing, challenging traditional supply-chain thinking, and elevating India's position in global value chains.