India has overtaken China as the leading manufacturer of smartphones shipped to the United States, a change largely driven by Apple, according to Canalys.

New data from Canalys shows that iPhone shipments to the United States fell 11% year-over-year in the second quarter of 2025, as the company accelerated a major supply chain shift to India amid persistent trade tensions with China; Apple shipped 13.3 million iPhones to the U.S. between April and June, down from 14.9 million units in the same period last year.

The decline follows a strong first quarter in which Apple saw a 25% year-over-year shipment increase, partly attributed to early consumer purchases ahead of anticipated tariffs. Canalys attributes the second-quarter decline to a combination of frontloaded demand, rising economic pressure on consumers, and increased competition in the low- and mid-range segments of the market.

Despite the drop in shipments, Apple remained the leading smartphone vendor in the U.S. in the second quarter of 2025, holding a 49% market share. This still represents a 7% decline from the 56% share recorded in the second quarter of 2024. Meanwhile, Samsung obtained 38% year-over-year growth, reaching 8.3 million units shipped and expanding its market share from 23% to 31%.

The share of U.S. smartphone shipments assembled in China dropped from 61% in the second quarter of 2024 to 25% in the second quarter of 2025. India now accounts for 44% of U.S. smartphone imports, up from just 13% a year ago. This marks the first time India has overtaken China as the leading manufacturing hub for smartphones shipped to the United States.

India became the leading manufacturing hub for smartphones sold in the U.S. 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. Apple has scaled up its production capacity in India over the last several years as a part of its ‘China Plus One’ strategy and has opted to dedicate most of its export capacity in India to supply the U.S. market so far in 2025.

Apple began assembling iPhone 16 Pro models in India during the quarter, marking a significant expansion of the company’s operations in the country. Nevertheless, the company continues to rely on manufacturing facilities in China to meet the full scale of U.S. demand for Pro models.

The shift is part of Apple’s broader effort to mitigate risk from U.S.-China trade tensions and reduce dependence on a single country for production. Apple also continued to frontload inventories in the second quarter to prepare for potential tariffs later in 2025.

Apple built up its inventories rapidly toward the end of Q1 and sought to maintain this level in Q2. Yet, the market only grew 1% despite vendors frontloading inventory, indicating tepid demand in an increasingly pressured economic environment and a widening gap between sell-in and sell-through.

The 1% overall market growth in U.S. smartphone shipments in the second quarter suggests that consumer appetite for new smartphones remains subdued. Apple is expected to report earnings on July 31.