India is rapidly changing the global smartphone supply chain, with its share of US smartphone imports surging as China’s dominance shrinks.
India’s Remarkable Rise in US Smartphone Imports
In the first five months of 2025, India’s share in US smartphone imports skyrocketed to nearly 36 percent. This is a dramatic increase from just about 11 percent in 2024.
During the same period, China, while still the largest exporter, saw its share drop significantly from 82 percent to 49 percent. This means that now, roughly one in every three smartphones imported into the US comes from India.
Data from the US International Trade Commission (USITC) shows that smartphone imports from India more than tripled year-on-year to 21.3 million units between January and May this year. In terms of value, these imports increased by 182 percent to $9.35 billion, already exceeding the total for all of 2024, which was around $7 billion.
Apple’s Strategic Shift to India
A major driving force behind India’s growing export numbers is Apple. The tech giant has been steadily increasing its iPhone production in the country.
Apple CEO Tim Cook recently stated that he expects most iPhones sold in the US during the April-June quarter to be manufactured in India. Currently, about 20 percent of Apple’s global iPhone production capacity is based in India.
Apple began by manufacturing older iPhone models in India but has since expanded to include all models, including the high-end Pro range.
Government Incentives Pave the Way
Apple’s pivot to India was significantly influenced by the Indian government’s Production Linked Incentive (PLI) scheme, launched in 2020. This scheme aims to boost local smartphone manufacturing.
The PLI scheme has helped Apple’s contract manufacturers shift some production away from China. This initiative has also dramatically transformed India’s mobile manufacturing landscape.
According to the Union MoS for Electronics and Information Technology, Jitin Prasada, India’s mobile manufacturing units have increased from just 2 in 2014-15 to 300 in 2024-25. Mobile phone production has surged 28 times to Rs 5.45 lakh crore, with exports increasing 127 times to Rs 2 lakh crore.
Navigating Political Winds and Supply Chain Challenges
Despite India’s rising manufacturing prowess, the shift has not been without its critics. Former US President Donald Trump has voiced strong disapproval of Apple’s expansion in India.
Trump recently threatened a 25 percent tariff on Indian-made iPhones if they are sold in the United States, stating his preference for US-based manufacturing.
However, Apple shows no signs of altering its India plans. Foxconn, a key Apple contract manufacturer, recently announced a $1.49 billion investment in a new unit in Tamil Nadu, where it already has a major iPhone production base.
While India’s supplier base for Apple is growing, it still trails China significantly. In 2023, China hosted 157 of Apple’s official vendors, compared to India’s 14, although sources indicate India’s count has now risen to 64, showing a positive trend.
- India’s share of US smartphone imports jumped from 11% to nearly 36% in Jan-May 2025.
- China’s share dropped from 82% to 49% in the same period.
- Apple’s increased iPhone production in India is a primary driver for this shift.
- The Indian government’s Production Linked Incentive (PLI) scheme has significantly boosted local manufacturing.
- Despite potential tariffs from Donald Trump, Apple and its suppliers continue to invest heavily in India.
This ongoing shift highlights India’s growing role in the global electronics supply chain and its strategic importance for major tech companies like Apple.
