India has officially surpassed China as the top exporter of smartphones to the United States an economic realignment underpinned by Apple’s accelerated shift in iPhone manufacturing. According to newly released data from research firm Canalys, smartphones produced in India made up 44% of US imports in the second quarter of 2025, a dramatic surge from just 13% in the same period a year earlier. Meanwhile, China’s share plunged to 25% down from over 60% last year.

Apple has been at the forefront of the “China Plus One” strategy, diversifying its manufacturing amid escalating US-China trade tensions and tariffs. Foxconn and Tata Electronics, Apple’s primary Indian partners, have ramped up operations to meet export demand, with the tech giant aiming to manufacture a quarter of all iPhones in India by 2027. The move is incentivized by India’s Production Linked Incentive (PLI) scheme and by Washington’s policy thrust towards resilient supply chains.

US-imposed tariffs currently at 20% on Chinese smartphones added new urgency, as did the threat of further hikes. By pivoting to India, Apple and others can avoid most of these costs, sustain profits, and ensure a steadier flow of products to US consumers.

India’s capabilities continue to rise, with significant investments in infrastructure, skilled labor, and policy support, although it still relies on imported components, particularly advanced semiconductors.

While India’s dramatic export surge marks a new era in tech manufacturing, sustaining this position will require continuous investment in R&D, logistics, and local component production. India’s ecosystem, although expanding rapidly, still lags in high-tech chip fabrication.

Apple’s ambitions are clear: by end-2026, most iPhones sold in the US may be made in India. This has broader implications, such as more job creation, higher foreign investment, and a shift in the global technology order.