【Epoch Times, July 29, 2025】With Apple accelerating the shift of its supply chain from China to India, India has become the largest manufacturing country of smart phones for the United States for the first time in the second quarter of this year.
According to the latest statistics from market research firm Canalys, as of the end of June, Indian-made phones accounted for 44% of the U.S. market, surpassing China and Vietnam to become the largest producer. Smartphone exports from India to the United States have grown by over 250% this year, with iPhone’s annual growth rate exceeding 60%.
In the second quarter, Vietnamese-made phones ranked second in the U.S. market with a share of 30%, as Vietnam is a major production base for Samsung Electronics.
The market share of Chinese-made phones in the U.S. has dropped from over 60% last year to 25%.
The Canalys research team pointed out that this significant change is mainly due to Apple’s massive expansion of production in India. Moreover, phone manufacturers have chosen to ship early and increase inventory due to concerns about tariff risks. In the second quarter, shipments of Indian phones increased by more than three times compared to the same period last year, but overall iPhone shipments from Apple to the U.S. (including from India) still decreased by 11% compared to the same period last year.
Apple and other phone manufacturers have been shifting their production lines from China to India and Vietnam to reduce U.S. tariffs and geopolitical risks over the past year or two.
Companies like Samsung and Motorola have also been working to shift their smartphone assembly business to India for U.S. exports. However, Canalys reports that compared to Apple, their transition speed is significantly slower and the scale is limited.
Currently, Apple has not established manufacturing factories in the U.S., but has pledged to invest $500 billion in the U.S. over the next four years and increase domestic employment opportunities.
Senior analyst Runar Bjorhovde stated, “Apple shipped a large quantity in advance at the end of the first quarter, increased inventory, and tried to maintain this level in the second quarter. Despite major manufacturers releasing products to the market, the overall market volume only saw a slight 1% increase compared to the same period last year.”
Bjorhovde said this indicates weak consumer demand, as consumers are significantly less willing to upgrade their phones under current economic pressures.
(This article referenced reports from Bloomberg and CNBC)