INDUSTRY BRIEF: India overtakes China as top U.S. smartphone supplier

India overtook China as the largest exporter of smartphones to the U.S. in the second quarter, as Apple (AAPL.US) moved a growing portion of its iPhone production to India to avoid U.S. tariffs on products made in China.

India-manufactured products accounted for 44% of all smartphones imported to the U.S. in the three months to June, up sharpy from just 13% a year earlier, according to CNBC, citing new data from Canalys. By comparison, made-in-China models accounted for just 25% of smartphone imports to the U.S. during the quarter, down sharply from 61% a year earlier.

Vietnam also surpassed China, supplying 30% of smartphones imported to the U.S. during the quarter, up from 24% a year earlier.

Apple is leading the shift away from China as a manufacturing base for its iPhones sold in the U.S. as part of its strategy to avoid U.S. tariffs targeting Chinese imports. India has been the biggest beneficiary of that shift, with Apple reportedly accelerating its drive to produce all of its iPhones sold in the U.S. in India this year, according to the report.

By Doug Young

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