1 in 3 US smartphone imports now made in India, China's lead shrinks
India's growing share — now 1 in 3, driven largely by Apple iPhones — comes amid ongoing trade talks with the US. While smartphones are India's top export to the US by value, President Donald Trump has threatened a 25 per cent tariff on Indian-made iPhones.
US smartphone imports from India jumped by over three times year-on-year to 21.3 million units between January and May this year, according to data from the US International Trade Commis-sion (USITC). In value terms (CIF), imports of Indian-made smartphones increased 182 per cent y-o-y to $9.35 billion, already higher than around $7 billion in the whole of 2024.
In May, Apple CEO Tim Cook had said the company expects most iPhones sold in the US in the April-June quarter to have India as their country of origin. Roughly 20 per cent of Apple's global iPhone production capacity is now based in India.
Meanwhile, China exported 29.4 million smartphones to the US between January and May — a 27 per cent y-o-y drop — valued at around $10 billion. China (49 per cent) and India (36 per cent) were followed by Vietnam with 8.3 million units exported, accounting for a share of 14 per cent.
Apple doubled down on production in India in 2020, after the government announced its flagship Production Linked Incentive (PLI) scheme to support smartphone manufacturing in the country. Through its contract manufacturers, the company has been the biggest beneficiary of the scheme, which has helped it move some production away from China.
While it started by making some of its older iPhones in India, Apple today produces all models, including the higher-end Pro range, in the country.
Apple's pivot to India from China for US-bound exports has drawn criticism from Trump, who, in May, said he's told Apple's chief executive that he does not want the company to expand its manufacturing operations in India.
'I have long ago informed Tim Cook of Apple that I expect their iPhones that will be sold in the United States of America will be manufactured and built in the United States, not India, or anyplace else. If that is not the case, a tariff of at least 25% must be paid by Apple to the US. Thank you for your attention to this matter,' Trump had said in a social media post.
However, Apple is unlikely to overhaul its India expansion plans in the near-term. In May, its contract manufacturer Foxconn informed the London Stock Exchange of a $1.49 billion investment in one of its India units, Yuzhan Technologies (India) Pvt Ltd. The new plant is expected to come up in Tamil Nadu, where Foxconn already has a major iPhone production base.
There are some challenges though. Of Apple's latest official supplier list, in 2023, as many as 157 of the company's various vendors and suppliers manufactured in mainland China, up from 151 the previous year. The number of Indian suppliers was 14. People in the know say that number has now risen to 64, marking a slow but steady shift of Apple's supplier base to India.
In a Lok Sabha reply on Wednesday, Union MoS for Electronics and Information Technology Jitin Prasada said mobile manufacturing units in India have increased to 300 in 2024-25, from just 2 in 2014-15. At the same time, production of mobile phones increased 28 times to Rs 5.45 lakh crore, while exports increased 127 times to Rs 2 lakh crore.
'Total FDI in field of electronics manufacturing in last 5 years (i.e. since FY 2020-21) is US$ 4,071 mn, cumulative FDI of US$ 2,802 mn has been contributed by MeitY PLI beneficiaries,' Prasada said.
Aggam Walia is a Correspondent at The Indian Express, reporting on power, renewables, and mining. His work unpacks intricate ties between corporations, government, and policy, often relying on documents sourced via the RTI Act. Off the beat, he enjoys running through Delhi's parks and forests, walking to places, and cooking pasta. ... Read More
Soumyarendra Barik is Special Correspondent with The Indian Express and reports on the intersection of technology, policy and society. With over five years of newsroom experience, he has reported on issues of gig workers' rights, privacy, India's prevalent digital divide and a range of other policy interventions that impact big tech companies. He once also tailed a food delivery worker for over 12 hours to quantify the amount of money they make, and the pain they go through while doing so. In his free time, he likes to nerd about watches, Formula 1 and football. ... Read More
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