India Emerges as a Key Player in US Smartphone Imports

India's role in the US smartphone market has surged, with its share of imports growing from 11% in 2024 to 36% in 2025, driven by Apple’s expanded manufacturing in India amid geopolitical tensions with China. The US imported 21.3 million smartphones from India between January and May 2025, a threefold increase from 2024. Meanwhile, China’s dominance shrank, with shipments dropping 27% and its market share falling to 49%. India’s growing electronics sector and Apple’s investments solidify its position as a key global supplier.

India has become a big player in the US smartphone market. As of mid-2025, 36% of smartphone imports came from India, up from a shocking 11% the previous year. According to The Indian Express, this huge rise shows Apple's decision to use India as a manufacturing hub, which is supported by good policies and rising political tensions with China.

From January to May 2025, the US bought 21.3 million smartphones from India. This was three times as many as were shipped during the same time period in 2024. The value of smartphones made in India and sent to the US rose by 182% year-over-year, hitting $9.35 billion, which is already more than the total value of all the smartphones sold in 2024. Smartphones are now India's most important gift to the US.

China's Loss of Control Over the US Smartphone Market

China is still the biggest source of smartphones for the US, but its position as the leader is weakening. China's exports dropped by 27% in the first five months of 2025, to 29.4 million units worth about $10 billion. The amount of smartphones that China sends to the US has dropped a lot—from 82% in early 2024 to just 49% this year. Vietnam is far behind, sending only 8.3 million units, or 14% of all the goods that were shipped.

In response to this drop, Chinese companies have slashed prices very sharply. The General Administration of Customs in China says that the average price of sending smartphones to the US dropped by 45% in June compared to the same month last year. This is happening even though new tariffs have been put on hold for now because of a 90-day trade deal between Washington and Beijing. But most Chinese goods, including smartphones, still have to deal with high taxes. These tariffs were put in place earlier this year and are as high as 30% for general goods and 20% for smartphones.

Things have been very bad for Chinese exports. In June alone, sales of smartphones to the US dropped by an amazing 71%. The amount of Apple iPhones and other electronics that China sent out of the country dropped 72% in April, reaching their lowest monthly value of less than $700 million since 2011.

Apple's Move to India as a Strategic Location

Apple has been a big part of India's rise as a leader in making smartphones. Since moving production to India in 2020, the tech giant has grown its business to include all of the iPhones, with help from contract makers like Foxconn. About 20% of all the iPhones Apple makes today are made in India.

Foxconn said in May 2025 that it would be investing $1.49 billion in its Indian company, Yuzhan Technologies, to improve the state of its factories in Tamil Nadu. India's supply chain is still not as big as China's, but it is growing very quickly. In India, the number of Apple suppliers has grown from 14 in 2023 to 64 in 2025. In China, there are 157 sellers.

The Wider Rise of India's Electronics Production

Over the past ten years, India's electronics production industry has grown by leaps and bounds. Based on figures from the government, the number of mobile manufacturing units has grown from two in 2014–15 to 300 in 2024–25. The amount of mobile phones made has grown 28 times, to ₹5.45 trillion, and the amount exported has grown 127 times, to ₹2 trillion. Foreign direct investment (FDI) has also come into the sector since FY21, with $2.8 billion coming from companies that are taking advantage of the Production Linked Incentive (PLI) plan.

Even with these successes, there are still problems to solve. President Donald Trump of the US has promised to put a 25% tariff on iPhones made in India. This is meant to stress the importance of bringing manufacturing back to the US. But Apple and its partners don't seem to be discouraged, which shows that they are strongly committed to India as a long-term manufacturing base.

India is becoming more important in the global electronics supply chain. This is due to both its ability to respond to changes in global trade patterns and the policies that have helped it do so. India is set to play a bigger part in the global smartphone market if it keeps investing and coming up with new ideas.