• India has become the top exporter of smartphones to the U.S., overtaking China for the first time.
• Apple's shift in production to India is a key factor in this transition, marking a 240% increase in exports.
• China’s share drastically fell from 61% to just 25% in U.S. smartphone imports.
• Vietnam also increased its market share, now accounting for 30% of U.S. smartphone imports.
• The overall smartphone market in the U.S. grew by a mere 1% in the second quarter of 2025 amidst economic pressures.

India has officially dethroned China as the leading exporter of smartphones to the United States, with smartphones assembled in India accounting for 44% of U.S. imports in the second quarter of 2025, up from just 13% a year prior. This dramatic shift culminated in a staggering 240% increase in India's smartphone export volume, coinciding with a sharp decline in China's share, which dropped to 25% during the same timeframe, according to Reuters, Bloomberg, and TRT Global.

This change is primarily attributed to Apple's strategic shift in its manufacturing processes, as part of its "China Plus One" strategy, which aims to mitigate geopolitical risks associated with relying heavily on Chinese production. Principal analyst at Canalys, Sanyam Chaurasia, noted that Apple has rapidly expanded its production capacity in India, dedicating much of its export capacity in the country to fulfill U.S. market demand so far in 2025, as reported by Business Insider and The Hill.

Moreover, while Apple remains critical to India’s ascendance in the smartphone market, other manufacturers such as Samsung and Motorola are also increasing their production efforts in India, albeit at a slower pace. In contrast, Vietnam has capitalized on the shifting dynamics, capturing 30% of the U.S. smartphone market, further indicating a significant displacement of Chinese dominance in the region, according to India Times and The Hill.

Despite these shifts, the overall smartphone market in the U.S. only saw a modest growth of 1% during the same period, reflecting weakened consumer demand under economic pressures. Notably, Apple's shipments declined by 11%, while Samsung saw an increase of 38%, indicating ongoing challenges for Apple amid the shifting trade environment, as per Reuters and India Times.