44% of smartphones were imported from India in Q2 2025 as tariffs rearrange supply chains
The United States smartphone market is in flux as uncertainty around tariffs continues, with Apple taking a 11% year-on-year shipment decline after strong growth in Q1.
iPhones increasingly are imported from India
Apple and other smartphone makers have reconfigured their supply chains so more devices ship to the United States from India than China. The move could see India being responsible for as much as 25% of global iPhone shipments by 2025.
A report from Canalys reflects these changes in smartphone shipments across Q2 2025. United States smartphone shipments grew by 1% for the quarter, while Apple's iPhone shipments fell by 11% year-on-year to 13.3 million units.
That decline follows a strong Q1 that had 25% shipment growth due, at least in part, to strong demand from customers attempting to make expensive purchases ahead of the expected tariffs. The second quarter decline was also likely due to competition from vendors introducing new budget models combined with increased cost of living across the United States.
The share of shipments from India grew by 240% year-on-year, now making up 44% of all smartphones imported into the US. That's up from 13% imported in Q2 2024, and a significant shift from China, which fell from 61% to 25% year-on-year.
Samsung's new, low-priced A-series models released in Q2 helped grow shipments 38% year-over-year to 8.3 million units. Samsung's market share jumped from 23% to 31%, while Apple's fell from 56% to 49%.
Imports from India are increasing industry wide. Image source: Canalys
The report suggests that Apple may struggle to make sales even with smartphone exemptions from tariffs. Runar Bjorhovde, Senior Analyst at Canalys, says consumers' spending habits will be impacted by tariffs and keep smartphone demand modest through the second half of 2025.
Apple will reveal its fiscal Q3 results on July 31 and hold an earnings call. The topics are expected to be heavily focused on tariffs and their impact.
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Comments
it does show however, that free trade isn’t always the best approach, something I find hard to admit. India has for years demanded local manufacture, and imposed quotas and tariffs for imported goods to encourage local manufacture. And companies complied as India is a growing and eventually huge market. Consequently it had a growing manufacturing base that meant it was in a good position now.