For the first time in history, India has overtaken China to become the top smartphone exporter to the USA, according to research analytics firm Canalys. This reflects a big shift in the manufacturing supply chain away from Beijing, courtesy of the recent security concerns and tariffs imposed by the trump administration.
According to the report of the research firm Canalys, Indian assembled smartphones accounted for almost 44% of imports to the US in the quarter ending in June. This marks a significant increase from just 13% in the same period a year prior. Overall, smartphone production in India increased a whopping 240% in about a year, according to Canalys.
In contrast, smartphone exports from China to the US shrank to 25% in June, a significant decrease from 61% the year prior. Vietnam also saw an increase in smartphone exports to the US with a market share of about 30%.
Apple’s accelerated shift mainly drives this surge to India amid heightened uncertainty in the US and China trade relations. Apple is investing heavily in India to make it a global hub for iPhone manufacturing, aiming to make almost a quarter of all iPhone in India itself. However, Trump has threatened Apple with additional tariffs, urging the company to manufacture its devices in the US. This, however, is not feasible as manufacturing in the USA will increase the price of the iPhone by quite a bit.
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Apple’s competitors are also making strides in the manufacturing shift to India, but at a much slower pace. Companies like Samsung and Motorola are investing in India to ensure that they are safe from increasing hostility towards goods manufactured in China.
