"Impact of Apple's Rapid Shift in Production Facilities"
India surpassed China to become the largest exporter of smartphones to the United States in the second quarter of this year. This shift is attributed to smartphone companies such as Apple rapidly relocating their manufacturing supply chains for products sold in the US from China to India, amid the ongoing tariff war between the US and China.
According to Yonhap News Agency, citing CNBC on July 29, the share of Indian-made smartphones among those imported into the US in the second quarter surged to 44% this year from 13% during the same period last year. This figure more than tripled compared to the previous year (13%).
According to market research firm Canalys, Samsung followed with a 31% share. Motorola accounted for 12%, while Google and TCL each held 3%. Other manufacturers combined for a 3% share.
In terms of total shipment volume, there was a 240% surge. In contrast, the share of Chinese-made smartphones during this period plummeted from 61% a year earlier to 25%, falling behind Vietnam (30%) as well.
"Significant Increase in Indian Exports"
Canalys chief analyst Sanyam Chaurasia explained, "Amid US-China trade uncertainty, Apple rapidly shifted its production base for iPhones sold in the US to India, leading to a significant increase in Indian exports."
However, total smartphone shipments in the US in the second quarter increased by only 1%, indicating that actual market demand remained lukewarm.
Canalys assessed, "Demand is slowing amid a pressured economic environment, and the gap between supply (sell-in) and actual sales (sell-through) is widening."
Apple plans to manufacture about 25% of its global iPhone production in India in the future. While Apple has started assembling the iPhone 16 Pro model in India, Canalys analyzed that the supply of premium models to the US still heavily relies on China's manufacturing infrastructure.
President Trump previously singled out Apple CEO Tim Cook, warning that if iPhones are not produced in the US, the company would face additional tariffs.
China has become a primary target in the tariff war led by President Trump, resulting in the country bearing the highest tariffs imposed by the US.
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