In a major milestone, India has overtaken China to become the leading exporter of smartphones to the United States in the April–June 2025 quarter. This marks a dramatic shift in global manufacturing patterns, fueled by strategic policies like Make in India and the Production-Linked Incentive (PLI) scheme, alongside Apple’s reconfigured supply chain.
Key Data Points
- India’s Market Share: Jumped to 44% in Q2 2025, up from just 13% during the same period in 2024.
- China’s Market Share: Fell sharply from 61% a year ago to 25% in the same quarter.
- Contributing Factors: Apple’s shift in iPhone assembly to India, part of a broader “China Plus One” strategy, played a major role in India’s surge.
- Export Surge: India’s smartphone exports grew a staggering 240% year-over-year, driven primarily by Apple’s ramped-up productions
What’s Driving the Shift?
1. Apple’s Strategic Realignment
Apple is increasingly moving iPhone assembly from China to India to manage tariff risks and diversify its manufacturing footprint. As a result, a majority of iPhones sold in the U.S. are now assembled in India.
2. Government Support and Incentives
India’s “Make in India” and PLI programs have significantly boosted local electronics manufacturing capacity—and the results are now visible. From April to June 2025, electronics and mobile manufacturing surged—from ₹38,000 crore to ₹3.27 lakh crore—while mobile phone exports increased manifold.
3. U.S. Tariff Pressures on China
Heightened tariffs on Chinese electronics have accelerated supply chain diversification. Faced with U.S. trade tensions, companies like Apple—and even Samsung and Motorola—are increasingly reallocating production to India.Reuters
What It Means for India & Global Supply Chains
| Factor | Impact |
|---|---|
| Manufacturing Shift | India is now the dominant supplier to the U.S. market. |
| Supply Chain Resilience | Reduced dependency on China, with diversified sourcing. |
| Policy Success | Indian incentives show strong return on strategic investment. |
| Market Realignment | Apple, Samsung, and others are reprioritizing global production. |
Final Thoughts
India’s overtaking of China in U.S. smartphone exports is a pivotal moment for the nation’s manufacturing ambitions. Whether this marks a sustained transformation or a short-term reaction to tariffs remains to be seen. Still, India’s rapid emergence as a global electronics hub signals a notable chapter in global tech supply chains.
