India has emerged as the largest exporter of smartphones to the US, overtaking China for the first time, according to a report by Canalys. This transformation is driven by Apple’s strategic move to diversify its production base outside China, which is in line with its ‘China Plus One’ approach.
Apple leads manufacturing revolution
Apple has been ramping up iPhone production in India significantly witnessed in the past few years. This year (in 2025), a major portion of iPhones manufactured in India were designated for export to the US. Earlier this year, Apple even chartered cargo planes to ship up to 1.5 million iPhones (600 tonnes) directly from India to the US.
Make in India gains global momentum
This achievement (for becoming the iPhone exporter for the US) has marked a major milestone for the Make in India initiative. With support from government incentives and state-level partnerships, India is certainly becoming a preferred alternative to China for global tech giants looking to de-risk their supply chains.
While Apple has started to assemble its latest iPhone 16 Pro models in India, high-volume production still relies partly on Chinese facilities. However, Apple’s bold shift is setting a precedent. Samsung and Motorola are also starting to shift parts of their US-bound production to India, though not at Apple’s scale yet.
Tariff uncertainty fuels urgency
The realignment comes amid uncertainty over trade policies. In April 2025, former US President Donald Trump imposed a 26 per tariff on Indian imports, later paused until August 1. This temporary relief has pushed brands to act quickly, securing manufacturing outside China to avoid future trade barriers.
iPhone shipments decline, but strategy holds
Despite the manufacturing growth, iPhone shipments to the US dipped 11 per cent year-on-year in Q2 2025 to 13.3 million units. Globally, Apple shipped 44.8 million iPhones in the same period, down 2 per cent from last year. Canalys attributes the decline to muted consumer demand, even as brands stockpile ahead of potential policy shifts.
What lies ahead for Indian manufacturing
Experts say India’s emergence as a smartphone export powerhouse is just the beginning. But for broader industry success, smaller vendors must develop stronger market strategies and increase local investments.
“India’s rise as a key export hub is just the beginning,” noted Sanyam Chaurasia of Canalys. “Make in India is playing a central role in reshaping global tech supply chains.”
With geopolitical tensions and tariff threats looming, major brands like Apple and Samsung are now deepening their roots in India to secure their US-bound supply chains.