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India now supplies one-third of US smartphone imports, eroding China's lead
Between January and May 2025, the US imported 21.3 million smartphones from India, more than triple the volume from the same period last year. In value terms, Indian-made smartphones shipped to the US surged 182 per cent year-on-year to $9.35 billion, already surpassing the full-year figure for 2024. Smartphones are currently India's top export to the US by value.
China's smartphone export to US shrink
China remains the largest smartphone supplier to the US, but has seen its dominance shrink. Shipments dropped by 27 per cent in the first five months of the year to 29.4 million units, valued at around $10 billion. China's share of US smartphone imports fell from 82 per cent in early 2024 to 49 per cent in 2025. Vietnam followed with 14 per cent of shipments, or 8.3 million units.
Facing this decline, Chinese manufacturers have begun slashing prices to stay competitive. According to data from China's General Administration of Customs, the average export price of smartphones shipped to the US fell 45 per cent in June compared to a year earlier. As earlier reported by Business Standard, the price cuts come despite a temporary pause on new tariff hikes under a 90-day trade truce between Beijing and Washington. Most Chinese goods continue to face a combined tariff of around 30 per cent, with smartphones subject to a 20 per cent tariff imposed earlier this year.
The pressure on Chinese exports has been severe. Smartphone shipments to the US fell 71 per cent in June alone. In April, Chinese exports of Apple iPhones and other mobile devices plunged 72 per cent to under $700 million — the lowest monthly value since 2011.
Apple accelerate India-made iPhone production
In contrast, Apple has accelerated its manufacturing shift to India. Apple began shifting production to India in 2020, starting with older models and now including the full iPhone lineup through its contract manufacturers such as Foxconn. Roughly 20 per cent of its global iPhone production is now based here. In May, Foxconn announced a $1.49 billion investment in its Indian unit, Yuzhan Technologies, to expand production in Tamil Nadu.
India's supply chain is still smaller than China's, but growing. Apple's Indian suppliers rose from 14 in 2023 to 64 in 2025, compared to 157 in China.
Rise of India's electronic manufacturing sector
India's overall electronics manufacturing has also seen significant growth. According to government data, the number of mobile manufacturing units rose from just two in 2014-15 to 300 in 2024-25. Mobile phone production grew 28-fold to ₹5.45 trillion, with exports climbing 127 times to ₹2 trillion during the same period. The sector has attracted over $4 billion in foreign direct investment since FY21, including $2.8 billion from PLI beneficiaries.
Meanwhile, US President Donald Trump has threatened to impose a 25 per cent tariff on Indian-made iPhones, pressing for a return of manufacturing to US soil. Despite this, the tech giant and its partners appear committed to India as a long-term manufacturing base.
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6 minutes ago
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Indian Express
34 minutes ago
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Indonesia has committed to eliminate existing HTS tariff lines on 'intangible products' and suspend related requirements on import declarations; to support a permanent moratorium on customs duties on electronic transmissions at the WTO immediately and without conditions; and to take effective actions to implement the Joint Initiative on Services Domestic Regulation, including submitting its revised Specific Commitments for certification by the World Trade Organization (WTO),' the White House statement read. The United States Trade Representative (USTR), in its report on non-tariff barriers, had earlier cited the 6 per cent equalisation levy as a discriminatory measure against US firms. The USTR report said that most digital services taxes are designed in ways that discriminate against US companies, often singling out American firms for taxation while excluding domestic companies engaged in similar lines of business. The US has also raised concerns about digital services taxes with a number of trade partners, particularly the EU. 'The disproportionate capture of US firms by the EU's Digital Services Act (DSA) and Digital Markets Act (DMA) is also noted as undermining US competitiveness due to increased compliance costs not borne by EU competitors,' the USTR said. Differences between India and the US assume significance as New Delhi continues to face the risk of 26 per cent reciprocal tariffs. After Indian negotiators completed another round of discussions in Washington last week, a US team led by the US Trade Representative for South and Central Asia, Brendan Lynch, is expected to visit India in mid-August to continue negotiations for a trade agreement. While India and the US have agreed on a wide range of tariff lines, the negotiations — which currently only involve market access for goods — remain stuck over sensitive sectors such as agriculture and automobiles, which are key job creators in India. Ravi Dutta Mishra is a Principal Correspondent with The Indian Express, covering policy issues related to trade, commerce, and banking. He has over five years of experience and has previously worked with Mint, CNBC-TV18, and other news outlets. ... Read More
