India now supplies 40% of U.S. smartphone demand
A McKinsey analysis cited by CNBC TV18 reports that India now fulfils roughly 40% of U.S. smartphone demand that previously came from China, reflecting deeper component and device manufacturing activity in India. The shift is framed as part of a larger rebalancing where different Asian countries specialise across the electronics value chain. (cnbctv18.com)
India now supplies about 40% of U.S. smartphone demand that used to be met by China, according to a McKinsey analysis cited by CNBC-TV18. (cnbctv18.com) The same analysis said U.S. imports from India rose by roughly $15 billion while imports from China fell by about $18 billion in 2025, as buyers shifted sourcing across Asia. (cnbctv18.com) India’s rise has been driven by a sharp jump in handset exports. In financial year 2024-25, India’s smartphone exports crossed ₹2 lakh crore, up about 54% from a year earlier, according to Electronics and Information Technology Minister Ashwini Vaishnaw. (ddindia.co.in) Apple has been the biggest engine in that shift. Reuters-reported customs data showed Foxconn and Tata shipped nearly $2 billion of iPhones from India to the United States in March 2025 alone, a record monthly total. (cnbc.com) That March surge came as Apple tried to get ahead of new U.S. tariffs on imports from major trading partners, with India facing lower duties than China at the time. (cnbc.com) The manufacturing shift is not a simple one-country swap. McKinsey’s analysis, as cited by CNBC-TV18, said China is still deepening its role in higher-value components, while India is taking a larger share of final assembly and finished-device exports. (cnbctv18.com) India’s policy support has helped build that assembly base. The Ministry of Electronics and Information Technology says its production-linked incentive scheme for large-scale electronics manufacturing pays 4% to 6% on incremental sales of goods made in India for eligible companies over five years. (meity.gov.in) Industry data shows how concentrated the export boom has become. The India Cellular and Electronics Association said mobile phone exports rose 55% year over year in FY25 to about ₹2 trillion, led by premium brands including Apple and Samsung. (tele.net.in) Bloomberg reported in April 2025 that Apple assembled $22 billion worth of iPhones in India in the year through March 2025, a 60% increase that lifted India’s share of global iPhone production to about 20%. (economictimes.indiatimes.com) The next test is whether India can move beyond assembly into more screens, chips, casings, and other parts. For now, the U.S. smartphone supply chain is being redrawn with India taking a much larger share of the boxes Americans actually buy. (cnbctv18.com)
