The US smartphone market grew only 1% in Q2 as vendors front-loaded inventory due to tariff concerns. Supply chain negotiations between China and the US boosted shipments of Indian-made phones. Apple shifted production to India, drawing criticism from President Trump. China’s share of US smartphone shipments fell significantly.

India became the leading manufacturing hub for smartphones sold in the US for the first time in Q2 2025. U.S. smartphone shipments assembled in China dropped from 61% to 25%. Indian-made smartphone volume grew 240% year-on-year. iPhone shipments declined by 11%, while Samsung shipments increased by 38% in the second quarter.

Tariffs prompted smartphone makers to reorganize supply chains to avoid import costs. China, a major electronics manufacturing hub, faced significant tariffs, leading to exploration of other Asian countries. Apple’s shift to India accelerated amid the uncertain US-China trade landscape. The market grew just 1%, indicating tepid demand in a pressured economic environment.

Read more at Yahoo Finance: US smartphone market sees sluggish growth as India-made phones surge, Canalys says