Apple's supply chain makeover just gave India a massive win over China

Apple drives India to become biggest smartphone exporter to US. India has overtaken China as the largest smartphone exporter to the United States, driven primarily by Apple’s aggressive shift in its manufacturing strategy. In a significant shake-up of global supply chains, smartphones assembled in India accounted for 44% of US imports in Q2 2025, up from just 13% a year earlier, according to research firm Canalys. 

The shift is part of Apple’s broader “China Plus One” strategy, aimed at reducing dependency on Chinese manufacturing amid rising geopolitical tensions and trade risks. The tech giant has rapidly expanded iPhone production in India, with the iPhone 16 now being assembled in the country. 

“Apple has scaled up its production capacity in India over the last several years and has opted to dedicate most of its export capacity in India to supply the US market in 2025,” said Sanyam Chaurasia, principal analyst at Canalys. 

While Apple continues to rely on China for high-end iPhone Pro model components, the majority of iPhones sold in the US are now made in India. During Apple’s Q1 earnings call, CEO Tim Cook confirmed that India is now the primary origin for most US-bound iPhones. 

India’s smartphone exports to the US surged by 240% year over year, cementing its position as the top exporter. Vietnam ranked second with a 30% share, while China’s share dropped dramatically from 61% to 25%.

Other smartphone brands like Samsung and Motorola have also started increasing their India-based production for US exports, but their contributions remain small compared to Apple's.

The move comes amid growing scrutiny from US officials. In May, former President Donald Trump threatened Apple with a 25% tariff on iPhones manufactured in India or elsewhere outside the US, pressuring the company to bring manufacturing back home. However, trade experts caution that US-based production would likely lead to significantly higher iPhone prices.

Peter Navarro, former White House trade advisor, recently criticized Cook’s slow pace in moving operations out of China, calling it "the longest-running soap opera in Silicon Valley."

Despite political pressure, Apple’s manufacturing shift appears to be paying off, making India the biggest smartphone exporter to the US a development that signals a dramatic realignment of the global tech supply chain.