India is likely to continue in that direction after recently overtaking China in smartphone exports to the United States. This milestone represents a huge change in the global electronics manufacturing playing field. In the second quarter, smartphones assembled in India accounted for 44% of U.S. imports. That’s an incredible leap from only 13% over the same time last year. The export boom owes its record numbers to four important drivers. Most tellingly, if manufacturers such as Apple are increasing their India production capabilities significantly, that should say something.
Smartphone manufacturing in India witnessed a record growth of 240% year-on-year. This influx was fueled by Apple’s mammoth promise to move at least part of its manufacturing arsenal to the area. The tech giant is either in the process of or planning to renovate a facility in India to increase its manufacturing capacity there. This incremental improvement has been key to making India a top exporter to the U.S. market.
Apple’s move away from China to India is not an isolated event. As a result, the country has quickly attracted many of the world’s largest global manufacturers to relocate their final assembly operations there. They are attracted by lower costs and favorable trade conditions. During Donald Trump’s presidency, India benefited from a huge, 26% tariff on its exports. By comparison, China was hit with tariffs above 100% on many of its exports. This favorable economic environment has helped India improve its competitiveness in the international market.
Sanyam Chaurasia, principal analyst, Canalys said the data was an early sign of a smartphone export tide turning. Canalys’s second quarter report paints a very different picture. China’s share of smartphone exports to the U.S. has fallen to just 25% so far this quarter. This positive development is a reflection of changing trends and direction within the industry and India’s increasingly significant role in the global electronics manufacturing landscape.
Additionally, Apple has already begun producing iPhone 16 Pro models in India. Beyond that, this move underscores the company’s commitment—beyond just words—to bringing a much wider and deeper production base to the country. Renauld Anjoran, CEO of Agilian Technology, an electronics manufacturing service found in China, had this to say about the trend.
“The plan for India is moving ahead as fast as we can.” – Renauld Anjoran
This rapid expansion is a testament to the changing manufacturing landscape. In fact, major tech companies like Apple and Microsoft are re-prioritizing their strategic priorities to limit risk associated with high dependence on Chinese production.
Specifically, India has targeted expanding its manufacturing capacity to supply the U.S. market. This targeted approach has been instrumental to its success as an export juggernaut. Smartphone exports from India have increased by a whopping 1400%. This is an indicator that manufacturers are quickly pivoting to meet the growing demand and changing market landscape.