Between January and May 2025, India supplied 36% of U.S. smartphone imports, up sharply from 11% in the same period in 2024, according to the U.S. International Trade Commission and Indian Express report. This surge is largely powered by Apple’s ramped-up iPhone production in India under the Production Linked Incentive (PLI) scheme.
In volume terms, India shipped approximately 21.3 million units, valued at $9.35 billion, already exceeding total Indian smartphone exports to the U.S. for all of 2024 ($7 billion)
📉 China’s Decline — and Others
China, once the dominant supplier, still leads with 49% of U.S. smartphone imports but has seen its share fall dramatically from 82% a year prior. Vietnam held 14% of exports during the same period
📈 Drivers of the Surge
Apple’s India Strategy
Apple’s contract manufacturers—including Foxconn, Tata Electronics, and Pegatron—now base about 20% of global iPhone production in India. A majority of Apple’s U.S.-bound iPhones during early 2025 originated from India
Policy Push
India’s PLI scheme incentivized global brands to manufacture locally, helping India diversify away from China over the past few years
Tariffs & Trade Tensions
Escalating U.S.–China trade tensions and high tariffs on China-made phones accelerated the shift. Apple reportedly airlifted 600 tonnes of iPhones to the U.S. from India to beat proposed tariffs of up to 125%
📋 Quick Overview
| Aspect | Details |
|---|---|
| Time Period | January–May 2025 |
| India’s Share of U.S. Imports | ~36% (up from 11% in 2024) |
| Volume Exported | ~21.3 million units |
| Export Value | $9.35 billion |
| China’s Share | ~49% in 2025, down from 82% |
| Vietnam’s Share | ~14% |
| Key Driver | Apple’s iPhone production in India (20% of global capacity) |
| Policy Support | PLI incentives, diversification from China |
| Trade Context | U.S.–China tariffs and supply‑chain shifts |
🔎 Context & Implications
This milestone highlights India’s rise as a strategic global smartphone manufacturing hub. Once a minor player, India now rivals China thanks to its emphasis on domestic capacity and global brands shifting their supply chains.
Apple’s pivot has been key: the company continues to scale up manufacturing in states like Tamil Nadu, where Foxconn and Tata Electronics operate large facilities
Despite this, challenges remain. China has restricted technician transfers to Indian factories, potentially limiting growth pace. Nonetheless, India’s mobile manufacturing base has grown from two units in 2014‑15 to over 300 by 2024‑25, boosting exports to $24 billion in FY 2024‑25 Business Standard
🧭 Outlook
India’s rapidly growing share—now one in every three smartphones imported by the U.S.—is reshaping global trade and supply chains. As Apple, Samsung, Motorola, and others scale up production in India, the country is well-positioned to further erode China’s long-held dominance in smartphone exports. Continued global incentives and supply-chain diversification will likely reinforce this trend.
