US smartphones are entering their “made in India” era

India has officially edged out China to become the top smartphone supplier to the US — for the first time ever.

According to new estimates from Canalys, the share of US smartphone imports from India surged to 44% in Q2, more than triple the 13% recorded a year ago. China’s share, meanwhile, more than halved over the same period, with the electronics powerhouse now accounting for just 25% of production — less than Vietnam.

Put simply, Apple has been aggressively redirecting production out of China after the country faced a cumulative 145% tariff rate in April. In the company’s latest earnings call, CEO Tim Cook said that the “majority” of iPhones sold in the US would be manufactured in India in Q2.

What’s interesting is that, for now, this is mostly a US-specific shift for the iPhone maker, as China remains the powerhouse of Apple’s global smartphone production. As of April, ~90% of iPhones were still made in China, which Cook has suggested will remain the main hub for devices sold outside the US. Other players like Samsung and Motorola are also moving US-bound smartphone assembly to India, per Canalys, though at a slower pace.

Part of India’s appeal comes down to basic tariff math: US importers currently pay a 20% tariff on smartphones from China — yet none from elsewhere, as electronics were exempted from reciprocal tariffs in April. But that relief might not last. Commerce Secretary Howard Lutnick has warned the reprieve is likely temporary, while President Trump has been pressuring Apple to bring production home with a 25% tariff threat on foreign-made iPhones.  

And, of course, there remains a looming tariff deadline for both countries, which have yet to finalize a deal with Washington: India’s 26% reciprocal rate is set to take effect on August 1, and China’s facing an August 12 deadline to avoid broader tariff reinstatement.