Latest news with #Canalys
Indian Express
an hour ago
- Business
- Indian Express
US smartphone market sees sluggish growth as India-made phones surge
The United States smartphone market grew just 1% in the second quarter as vendors front-loaded device inventories amid tariff concerns, while supply chain negotiations between China and the United States boosted shipments of Indian-made phones, research firm Canalys said on Monday. WHY IT'S IMPORTANT The imposition of U.S. tariffs has prompted smartphone makers to reorganize their supply chains to avoid higher import costs and protect their margins. China, a major hub for electronics manufacturing, has been targeted by significant tariffs, pushing hardware makers to explore other Asian countries to maintain low production costs. CONTEXT In response to tariffs, Apple earlier this year sought to make most of its iPhones sold in the United States at factories in India. However, the move drew criticism from U.S. President Donald Trump, who threatened additional tariffs on the Cupertino-based company if it did not produce domestically. KEY QUOTES '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 US and China,' said Sanyam Chaurasia, Principal Analyst at Canalys. 'The market only grew 1% despite vendors front-loading inventory, indicating tepid demand in an increasingly pressured economic environment and a widening gap between sell-in and sell-through,' said Runar Bjorhovde, Senior Analyst at Canalys. BY THE NUMBERS The share of U.S. smartphone shipments assembled in China fell from 61% in the second quarter of 2024 to 25% in the second quarter of 2025. India picked up most of the decline, with Indian-made smartphone volume growing 240% year-on-year. iPhone shipments declined by 11% while Samsung shipments grew 38% in the second quarter.
CNBC
2 hours ago
- Business
- CNBC
India overtakes China in smartphone exports to the U.S. as manufacturing jumps 240%, report shows
India is now the top exporter of smartphones to the U.S., overtaking China for the first time, according to research firm Canalys, reflecting the shift in manufacturing supply chain away from Beijing amid tariff-fueled uncertainty. Smartphones assembled in India accounted for 44% of U.S. imports of those devices in the second quarter, a significant increase from just 13% in the same period last year. Total volume of smartphones made in India soared 240% from a year earlier, Canalys said. In contrast, the share of Chinese smartphone exports to the U.S. shrank to 25% in the quarter ended June, from 61% a year earlier, Canalys data released Monday showed. Vietnam's share of smartphone exports to the U.S. was also higher than that of China at 30%. The surge in shipments from India was primarily driven by Apple's accelerated shift toward the country at a time of heightened trade uncertainty between the U.S. and China, said Sanyam Chaurasia, principal analyst at Canalys. Apple has reportedly been speeding up its plans to make most of its iPhones sold in the U.S. at factories in India this year, with the aim of manufacturing around a quarter of all iPhones in the country in the next few years. Trump has threatened Apple with additional tariffs and urged the company's CEO Tim Cook to make iPhones domestically, a move experts have said would be nearly impossible as it would push iPhone prices higher. While many of Apple's core products, including iPhones and Mac laptops, have received exemptions from Trump's "reciprocal tariffs," officials have warned that it could be a temporary reprieve. Its global peers, Samsung Electronic and Motorola, have also been striving to move assembly for U.S.-bound smartphones to India, though their shift has been significantly slower and is limited in scale compared with Apple, according to Canalys. Many global manufacturers have been increasingly shifting their final assembly to India, allocating more capacity in the South-Asian nation to serve the U.S. market, said Renauld Anjoran, CEO of Agilian Technology, an electronics manufacturer in China. The Guangdong-based company is now renovating a facility in India with plans to move part of its production to the country. "The plan for India is moving ahead as fast as we can," Anjoran said. The company expects to begin trial production runs soon before ramping up to full-scale manufacturing. While shipments, which represent the number of devices sent to retailers do not reflect final sales, they are a proxy for market demand. Overall, iPhone shipments declined by 11% year on year to 13.3 million units in the second quarter, reversing the 25% growth in the prior quarter, according to Canalys. Shares of Apple have tumbled 14% this year, partly on concerns over its high exposure to tariff uncertainty and intensifying competition in smartphones and artificial intelligence sector. While the company has begun assembling iPhone 16 Pro models in India, it still relies heavily on China's more mature manufacturing infrastructure to meet U.S. demand for the premium model, Canalys said. In April, Trump imposed a 26% tariff on imports from India, much lower than the triple-digit tariffs on China at the time, before pausing those duties until an Aug 1. deadline.
The Hindu
2 hours ago
- Business
- The Hindu
U.S. smartphone market sees sluggish growth as India-made phones surge: Report
The United States smartphone market grew just 1% in the second quarter as vendors front-loaded device inventories amid tariff concerns, while supply chain negotiations between China and the United States boosted shipments of Indian-made phones, research firm Canalys said on Monday. WHY IT'S IMPORTANT The imposition of U.S. tariffs has prompted smartphone makers to reorganize their supply chains to avoid higher import costs and protect their margins. China, a major hub for electronics manufacturing, has been targeted by significant tariffs, pushing hardware makers to explore other Asian countries to maintain low production costs. CONTEXT In response to tariffs, Apple earlier this year sought to make most of its iPhones sold in the United States at factories in India. However, the move drew criticism from U.S. President Donald Trump, who threatened additional tariffs on the Cupertino-based company if it did not produce domestically. KEY QUOTES "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 US and China," said Sanyam Chaurasia, Principal Analyst at Canalys. "The market only grew 1% despite vendors front-loading inventory, indicating tepid demand in an increasingly pressured economic environment and a widening gap between sell-in and sell-through," said Runar Bjorhovde, Senior Analyst at Canalys. BY THE NUMBERS The share of U.S. smartphone shipments assembled in China fell from 61% in the second quarter of 2024 to 25% in the second quarter of 2025. India picked up most of the decline, with Indian-made smartphone volume growing 240% year-on-year. iPhone shipments declined by 11% while Samsung shipments grew 38% in the second quarter.
Mint
3 hours ago
- Business
- Mint
India now makes 44% of all smartphones shipped to US, thanks to Apple
Amid uncertainty over tariff negotiations with China, there has been a significant rise in 'Made in India' smartphones exported to the US. According to a new report by Canalys, the share of US smartphone shipments assembled in China declined significantly from 61% in Q2 2024 to 25% in Q2 2025. Meanwhile, the report also notes a sharp rise in India-made smartphone shipments to the US, registering a 240% year-on-year growth and now accounting for 44% of total shipments imported into the country, up from just 13% a year earlier. Sanyam Chaurasia, Principal Analyst at Canalys, attributed the rise in Made-in-India smartphone exports largely to Apple's accelerated supply chain shift to the country. '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 US and China,' Chaurasia said in a blog post. 'Apple has scaled up its production capacity in India over the last several years as part of its 'China Plus One' strategy and has opted to dedicate most of its export capacity in India to supply the US market so far in 2025. Apple has begun manufacturing and assembling Pro models of the iPhone 16 series in India but is still dependent on established manufacturing bases in China for the scaled supply needed for Pro models in the US,' he added. Chaurasia further noted that Samsung and Motorola have also increased their share of US-targeted supply from India, although their moves are significantly slower and smaller in scale compared to Apple's. Notably, Motorola still has its main manufacturing hub in China, while Samsung mostly relies on Vietnam for smartphone production. Apple has been gradually increasing iPhone production in India over the past few years, but the company is now looking to scale it up even more amid growing uncertainty over China tariffs under the current US administration. Previous reports have indicated that Apple plans to import most of its iPhones for the US market from India by the end of next year. That would require production in India to rise from the current 40 million units to 80 million units.
Yahoo
4 hours ago
- Business
- Yahoo
Most Phones Sold in US Are Now Made in India as Apple Shifts
(Bloomberg) -- India has overtaken China to become the top source of smartphones sold in the US, after Apple Inc. shifted to assemble more of its iPhones in the South Asian country. Budapest's Most Historic Site Gets a Controversial Rebuild San Francisco in Talks With Vanderbilt for Downtown Campus Can This Bridge Ease the Troubled US-Canadian Relationship? Trump Administration Sues NYC Over Sanctuary City Policy In the quarter through June, India was the largest manufacturer of smartphones shipped to the US for the first time, accounting for 44% of the market, according to Canalys data. Vietnam, home to much of Samsung Electronics Co.'s production, came in second. China fell from having more than 60% of all estimated shipments a year ago to just 25%. The stark change comes as Apple ramped up its production in India and smartphone makers 'frontload device inventories amid tariff concerns,' Canalys researchers wrote. The volume of made-in-India devices more than tripled in the past quarter from a year earlier. Apple's iPhone shipments to the US declined by 11%, reflecting distortions to its usual pattern due to unusually high shipments to stockpile units earlier in the year. 'Apple built up its inventories rapidly toward the end of Q1 and sought to maintain this level in Q2,' said Runar Bjorhovde, senior analyst at Canalys. 'Yet, the market only grew 1% despite vendors frontloading inventory, indicating tepid demand in an increasingly pressured economic environment.' Apple and its peers have been moving production beyond China and into countries such as India and Vietnam to mitigate risks related to tariffs and geopolitical tensions. That's drawn the ire of President Donald Trump, who's been pushing companies to add manufacturing in the US instead. Apple still makes most of its iPhones in China and has no smartphone production in the US — though it's promised to hire more workers at home and pledged to spend $500 billion domestically over the next four years. Burning Man Is Burning Through Cash It's Not Just Tokyo and Kyoto: Tourists Descend on Rural Japan Elon Musk's Empire Is Creaking Under the Strain of Elon Musk Cage-Free Eggs Are Booming in the US, Despite Cost and Trump's Efforts Confessions of an American Who Helped North Korea's Wild Remote Worker Scheme ©2025 Bloomberg L.P. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
