Apple Drives India To Become Biggest Smartphone Exporter To US In April-June, Pips China
The total volume of 'Made-in-India' smartphones grew by 240 percent year-on-year and now accounts for 44 percent of smartphones imported into the US, up from just 13 percent in Q2 2024, according to research firm Canalys (now part of Omdia).
'India became the leading manufacturing hub for smartphones sold in the US for the very first time in Q2 2025, largely driven by Apple's accelerated supply chain shift to India amid an uncertain trade landscape between the U.S. and China,' said Sanyam Chaurasia, Principal Analyst at Canalys.
Apple has significantly scaled up its production capacity in India over the past few years as part of its 'China Plus One' strategy and has dedicated most of its export capacity in India to supplying the U.S. market in 2025.
'Apple has begun manufacturing and assembling Pro models of the iPhone 16 series in India, but it still relies on established manufacturing bases in China for the large-scale supply needed for Pro models in the US,' added Chaurasia.
Samsung and Motorola have also increased their share of US-bound supply from India, although their transitions have been significantly slower and smaller in scale compared to Apple. Like Apple, Motorola's core manufacturing hub is in China, while Samsung primarily produces its smartphones in Vietnam.
U.S. smartphone shipments grew by 1 percent in Q2 2025 as vendors continued to frontload inventories amid tariff concerns. The uncertain outcome of trade negotiations with China has further accelerated the reorientation of global supply chains.
Apple rapidly built up its inventories toward the end of Q1 and aimed to maintain those levels in Q2. Samsung also increased its inventory in Q2, driving a 38 percent year-on-year growth in shipments, largely fueled by its Galaxy A-series devices, the report said.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Time of India
13 minutes ago
- Time of India
Markets rise as Trump chip exemptions boost tech giants
Academy Empower your mind, elevate your skills Asian equities rose Thursday, with big-name chip firms making big gains after Donald Trump said those investing in the United States would be exempted from a threatened 100% tariff on advances built on a strong lead from Wall Street and extended the previous day's rally fuelled by hopes the Federal Reserve will cut interest rates next month.A day before sweeping tariffs were due to come into effect on dozens of countries, the president said: "we're going to be putting a very large tariff on chips and semiconductors".He added that the level would be "100%" but did not offer a he said "the good news for companies like Apple is, if you're building in the United States, or have committed to build... in the United States, there will be no charge".Stock gains were led by Taiwan's giant TSMC, which surged almost five percent in early trade, with the island's National Development Council chief Liu Chin-ching saying the firm was in the clear."Because Taiwan's main exporter is TSMC, which has factories in the United States, TSMC is exempt," he told a briefing in which is ramping up manufacturing in Arizona, has pledged to invest as much as $165 billion in the United States, which the firm said in March was the "largest single foreign direct investment in US history".Seoul-listed Samsung, which is also pumping billions into the world's number one economy, rose more than two% while South Korean rival SK hynix was also firms were also helped after the US giant said it will invest an additional $100 billion in the United States, taking its total pledge to $600 billion over the next four and Pegatron both rose in Tokyo Electron and Renesas both retreated in Japanese trade."To some degree this outcome would be something of a relief," said Morgan Stanley analysts."Yes, 100% tariffs are unpalatable but if companies are given time to restore them, the real tax is just the higher cost of building chips in the United States."Trump's remarks came hours before his wide-ranging "reciprocal" tariffs are set to kick in against trading partners, and after he doubled his levy on India to 50% over its purchase of Russian tolls on Brazilian goods came into place Wednesday, with significant exemptions, after Trump targeted Latin America's biggest economy over its prosecution of former president Jair are keeping tabs on talks between the White House and New Delhi, as well as other countries including Switzerland, which was this week hammered with a 39% markets extended their recent run-up and have regained much of last week's losses sparked by the president's tariff announcements and weak US jobs Hong Kong, Shanghai, Singapore, Seoul and Wellington were all in the green, with Taipei leading the way thanks to the surge in gains followed a strong day on Wall Street, where Apple jumped more than five% and Amazon piled on four%.Traders had already been on a buying streak as they grew optimistic that the Fed will cut rates after data last week showing US jobs creation cratered in May, June and July, signalling the economy was weakening. US futures rose prices rose after Trump threatened penalties on other countries that "directly or indirectly" import Russian oil, after imposing his extra toll on traders are keeping tabs on developments regarding Moscow and its war in Ukraine after the US president said he could meet with Vladimir Putin "very soon" following what he called highly productive talks between his special envoy and the Russian leader.
The Hindu
13 minutes ago
- The Hindu
Trump plans 100% tariff on computer chips, unless companies build in U.S.
U.S. President Donald Trump said on Wednesday that he will impose a 100% tariff on computer chips, raising the spectre of higher prices for electronics, autos, household appliances and other essential products dependent on the processors powering the digital age. "We will be putting a tariff of approximately 100% on chips and semiconductors," Mr. Trump said in the Oval Office while meeting with Apple CEO Tim Cook. "But if you are building in the United States of America, there is no charge." The announcement came more than three months after Mr. Trump temporarily exempted most electronics from his administration's most onerous tariffs. The Republican president said companies that make computer chips in the U.S. would be spared the import tax. During the COVID-19 pandemic, a shortage of computer chips increased the price of autos and contributed to higher inflation. Investors seemed to interpret the potential tariff exemptions as a positive for Apple and other major tech companies that have been making huge financial commitments to manufacture more chips and other components in the U.S. Big Tech already has made collective commitments to invest about USD 1.5 trillion in the US since Mr. Trump moved back into the White House in January. That figure includes a USD 600 billion promise from Apple after the iPhone maker boosted its commitment by tacking another USD 100 billion on to a previous commitment made in February. Now the question is whether the deal brokered between Mr. Cook and Mr. Trump will be enough to insulate the millions of iPhones made in China and India from the tariffs that the administration has already imposed and reduce the pressure on the company to raise prices on the new models expected to be unveiled next month. Wall Street certainly seems to think so. After Apple's stock price gained 5% in Wednesday regular trading sessions, the shares rose by another 3% in extended trading after Mr. Trump announced some tech companies will not be hit with the latest tariffs while Mr. Cook stood alongside him. The shares of AI chipmaker Nvidia, which also has recently made big commitments to the U.S., rose slightly in extended trading to add to the USD 1 trillion gain in market value the Silicon Valley company has made since the start of Mr. Trump's second administration. The stock price of computer chip pioneer Intel, which has fallen on hard times, also climbed in extended trading. Inquiries sent to chip makers Nvidia and Intel were not immediately answered. The chip industry's main trade group, the Semiconductor Industry Association, declined to comment on Mr. Trump's latest tariffs. Demand for computer chips has been climbing worldwide, with sales increasing 19.6% in the year-ended in June, according to the World Semiconductor Trade Statistics organisation. Mr. Trump's tariff threats mark a significant break from existing plans to revive computer chip production in the U.S. that were drawn up during the administration of President Joe Biden. Since taking over from Mr. Biden, Mr. Trump has been deploying tariffs to incentivise more domestic production. Essentially, the president is betting that the threat of dramatically-higher chip costs would force most companies to open factories domestically, despite the risk that tariffs could squeeze corporate profits and push up prices for mobile phones, TVs and refrigerators. By contrast, the bipartisan CHIPS and Science Act that Mr. Biden signed into law in 2022 provided more than USD 50 billion to support new computer chip plants, fund research and train workers for the industry. The mix of funding support, tax credits and other financial incentives were meant to draw in private investment, a strategy that Mr. Trump has vocally opposed.
&w=3840&q=100)
Business Standard
13 minutes ago
- Business Standard
Tim Cook gifts Trump gold-based glass plaque as Apple ups US bet
Apple Chief Executive Officer (CEO) Tim Cook on Wednesday (local time) presented US President Donald Trump with a one-of-a-kind glass plaque made by iPhone glass supplier Corning. Cook presented the gift to Trump as he announced Apple's plan of increasing its investment in the US by $100 billion, bringing it up to $600 billion over four years. The plaque, engraved with Trump's name and the Apple logo, was made from glass produced in Kentucky and set in a 24-karat gold base from Utah. The design was created by a former US Marine Corps corporal now working at Apple. "This glass comes off the Corning line. It's engraved for President Trump. It's a unique unit of one... and the base comes from Utah and is 24-karat gold," Cook said while presenting the plaque at the Oval Office. A video of the event shared on X shows Cook placing the disc-shaped plaque on the Resolute Desk in the White House. Apple pledges $100 bn more investment in US During the meeting, Trump revealed that Apple would invest an additional $100 billion in US domestic manufacturing over the next four years. As part of this initiative, Apple plans to invest $2.5 billion in Corning Inc., marking the first time that all cover glass for iPhones and Apple Watches will be made domestically at Corning's Kentucky plant. The investment is seen as Apple's effort to align with the 'Made in US' push amid ongoing tariff pressures. India-US tensions shadow Apple's export gains The announcement also comes against the backdrop of rising trade tensions between Washington and New Delhi. On August 1, Trump increased tariffs on Indian goods by an additional 25 per cent, taking the total to 50 per cent. He also warned of penalties for India's continued oil trade with Russia. Business Standard previously reported that Apple exported iPhones worth $6 billion from India in April–June 2025, an 82 per cent year-on-year increase. India also recorded its highest-ever smartphone exports in the first quarter of FY26, with Apple accounting for 78 per cent of the total. Despite these gains, Apple may face headwinds. During its recent earnings call, Cook warned that the company could take a $1.1 billion hit in the fourth quarter due to the new US tariffs. Fiscal impact and strategic alignment Apple follows an October-to-September fiscal year. Its third-quarter results showed strong growth from India and other regions. However, in light of the new tariff regime, the company's decision to deepen US investments appears aimed at balancing operational risks with political realities.
