India Overtakes China as Top Smartphone Supplier to the United States

TLDRs:

• India’s smartphone exports to the US more than doubled, overtaking China’s market share.
• August shipments reached $1.53 billion, highlighting strong year-on-year growth in India.
• Made-in-India devices now account for 44% of US imports, while China’s share drops.
• First five months of FY26 see a 55% increase in India’s smartphone export revenue.

Smartphone exports from India surged 39% year-on-year in August 2025, totaling approximately $1.53 billion, according to the India Cellular & Electronics Association (ICEA).

This growth was driven primarily by a dramatic rise in shipments to the United States, which more than doubled to $965 million in August, compared to $388 million a year earlier.

ICEA cautioned that monthly fluctuations should not be interpreted in isolation, noting that August and September traditionally experience slower sales due to new product launches and heightened domestic demand during festival seasons. Nevertheless, the growth reflects a broader upward trend in India’s mobile manufacturing and export capacity.

India Surpasses China in US Market

According to research firm Canalys, India overtook China in Q2 2025 as the leading supplier of smartphones to the United States.

Made-in-India devices now constitute 44% of US smartphone imports, a remarkable jump from 13% the previous year. In contrast, China’s share of US imports fell sharply from 61% to 25% during the same period.

This shift underscores the increasing competitiveness of India’s mobile manufacturing ecosystem, which has attracted international attention for its quality, pricing, and supply chain efficiency. Analysts suggest that India’s success is also fueled by international brands diversifying production away from China amid geopolitical uncertainties and trade tensions.

Strong Growth in FY26

India’s smartphone export performance has been robust throughout the fiscal year. ICEA reported that in the first five months of FY26, total exports reached $11.7 billion, representing a 55% increase from $7.6 billion in the same period last year.

The surge in exports aligns with India’s ongoing strategy to position itself as a global hub for mobile manufacturing. Policies promoting local production, coupled with investments in infrastructure and supply chain capabilities, have strengthened India’s ability to meet international demand efficiently.

Global Smartphone Market Context

While India’s export numbers are impressive, they come amid broader shifts in the global smartphone market. Counterpoint Research noted that global smartphone sales grew by 4% in 2024 compared to 2023.

However, industry leaders experienced mixed results, Apple faced a 2% decline in iPhone sales due to delayed AI system integration, while Samsung saw a modest 1% increase despite a slight drop in global market share.

Chinese brands such as Xiaomi, Vivo, and Oppo continued to see strong performance in select markets, yet India’s rising role as a manufacturing hub is altering competitive dynamics, particularly in the US market. Analysts believe that India’s continued growth could reshape long-term trade patterns in the global smartphone industry.

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