Fuelled by Apple’s production shift and 240% growth, as vendors frontload shipments amid tariff uncertainty, the supply chain dynamics of the US smartphone market diverts to India.
US smartphone shipments rose 1% year-on-year (YoY) in Q2 2025 to 27.1 million units, according to Canalys (now part of Omdia). The modest growth came despite aggressive inventory build‑ups by vendors seeking to mitigate tariff risks amid unresolved trade negotiations with China. However, the highlight of the quarter was India’s rise as the top supplier, surpassing China.
The supply chain shift was striking. US smartphone imports from China plunged from 61% in Q2 2024 to just 25% in Q2 2025. India’s share surged from 13% to 44%, with shipment volumes up 240% year on year. Vietnam and other Southeast Asian nations accounted for much of the remainder.
Among the vendors, Apple led the US market with 13.3 million units shipped, capturing 49% share, though down from 14.9 million units and 56% share in Q2 2024; an 11% decline. Samsung grew sharply, up 38% to 8.3 million units (31% share), driven by Galaxy A‑series sales. Motorola ranked third with 3.2 million units (12% share), up 2%. Google shipped 0.8 million units (3% share), up 13%, while TCL fell 23% to 0.7 million units (3% share). All other brands combined shipped 0.7 million units, down 34%.
“India became the primary manufacturing hub for US smartphone supply for the first time,” said Sanyam Chaurasia, Principal Analyst at Canalys.
“Apple’s ‘China Plus One’ strategy has rapidly expanded Indian production, including iPhone 16 Pro assembly, though China remains vital for Pro model scale,” he said. Samsung and Motorola have also increased India‑sourced output, but at a slower pace.
The data showed shipments fluctuating over the past three years; steep declines through 2022, recovery in 2023, and a spike in Q1 2025 (12% growth) before softening in Q2. While vendors frontloaded shipments, YoY growth was limited, indicating slow sell‑through.
Looking ahead, Runar Bjorhovde, Senior Analyst at Canalys, cautioned: “Even if smartphones avoid tariffs, other consumer goods could be hit, tightening budgets and keeping H2 demand muted.”
With over 90% of the market held by Apple, Samsung, and Motorola, smaller vendors struggle to justify US investment. Brands like HMD are scaling back, while OnePlus and Nothing target online and retail channels through Best Buy, Walmart, Amazon, and their own direct websites, but their US presence remains niche.
