India Overtakes China as Top Smartphone Manufacturing Hub for U.S. [Report]

A new report from Canalys shows India has officially surpassed China as the top manufacturing origin for smartphones shipped to the U.S. The shift comes as the overall American market saw just 1% growth in the second quarter of 2025, with vendors continuing to stockpile inventory over tariff uncertainties.

It's a dramatic turnaround in where America's smartphones are made. The share of U.S. smartphone shipments coming from China plunged from 61% in Q2 2024 to just 25% in the same quarter this year. India picked up nearly all of that slack, its share of U.S. imports soaring from 13% to a dominant 44%. Apple's own shipments saw an 11% year-over-year dip to 13.3 million units, a drop Canalys describes as a market correction after a strong first quarter. In contrast, Samsung's shipments jumped 38% to 8.3 million, and Motorola grew 2% to 3.2 million.




This manufacturing pivot is a key piece of Apple's ongoing push to diversify its supply chain beyond China, a strategy backed by major investments like the recent $1.5 billion from Foxconn. The big move hasn't been without its hurdles, however, with reports that supplier Foxconn has been pulling key Chinese engineers from its Indian plants.

The stockpiling strategy was on full display earlier this year, with reports of Apple rushing planes full of iPhones to the U.S. ahead of new duties. This inventory buildup has created a gap between shipments to retailers and actual sales, signaling that shoppers are still holding back on spending. The tariff situation remains a major factor, with President Donald Trump having previously threatened a 25% tariff on iPhones not made in the U.S.

Check out the full report at the link below and please download the iClarified app or follow iClarified on Twitter, Facebook, YouTube, and RSS for more smartphone market updates.

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