In a major shift within the global tech supply chain, India has become the leading exporter of smartphones to the United States in Q2 2025, accounting for 44% of all imports. This dramatic rise comes amid growing concerns over tariffs and global trade instability.
Just a year ago, only 13% of smartphones shipped from India to the U.S. Now, that number has surged by 240% year-over-year. Meanwhile, China’s share of U.S. imports has plummeted from 61% to just 25%, signaling a new era in manufacturing and trade strategy.
Apple Faces Headwinds Despite Supply Chain Shift
Apple, one of the key players impacted by the supply chain change, reported an 11% drop in year-over-year shipments, totaling 13.3 million units. This decline follows a strong Q1 driven by consumers rushing to make purchases ahead of anticipated price hikes.
Despite shifting production to India, Apple still struggles to maintain its market share. Its slice of the U.S. market fell from 56% to 49%, largely due to increased competition and higher living costs affecting consumer spending.
Samsung Gains as Budget Models Rise
Samsung, on the other hand, saw gains in Q2 thanks to its A-series budget smartphones. The company boosted its shipments by 38%, reaching 8.3 million units. As a result, its market share climbed from 23% to 31%.
According to Canalys analyst Runar Bjorhovde, smartphone demand may remain modest through the second half of 2025. He believes rising tariffs and economic pressures will shape consumer behavior going forward.
Looking Ahead
Apple is set to announce its fiscal Q3 results on July 31, with tariffs expected to be a central topic during its earnings call. All eyes are on how the company will navigate this changing landscape and whether India will continue to solidify its role in Apple’s global strategy.
As supply chains evolve and tariffs reshape trade routes, India’s rapid rise marks a significant moment for the global smartphone industry.
