Workers will assemble their smartphones on January 28, 2021 at Padget Electronics Pvt Factory, Dixon Technologies, Uttar Pradesh, India.
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India overtakes China to become the top exporter of smartphones to the US, according to research firm Canalys.
Smartphones assembled in India accounted for 44% of US imports of these devices in the second quarter, up significantly from just 13% in the same period last year. The total volume of smartphones made in India has skyrocketed 240% from the previous year, Canalys said.
In contrast, the share of Chinese smartphone exports to the US shrank to 25% in the quarter that ended in June from 61% the previous year, Canalys data released on Monday showed. Vietnam’s share of smartphone exports to the US was also 30% higher than China’s share.
The surge in shipments from India was driven primarily by appleSanyam Chaurasia, principal analyst at Canalys, said it accelerated its shift towards the country during a period of increasing trade uncertainty between the US and China. This is the first time India has exported more smartphones to the US than China.
Apple is reportedly speeding up its plans to manufacture the majority of iPhones sold in the US at its Indian factories this year, with the aim of producing about a quarter of all iPhones in the country over the past few years.
Trump threatened Apple with additional tariffs, urging its company CEO Tim Cook to manufacture the iPhone domestically, experts said it was almost impossible as it pushed the iPhone’s price higher.
Many of Apple’s core products, including iPhones and Mac laptops, are exempt from Trump’s “mutual tariffs,” but authorities have warned that it could be a temporary reprieve.
That global peer Samsung Electronics and MotorolaAlso, according to Canalys, that shift is very slow and is limited in size compared to Apple, but it is trying to move US-bound smartphone assembly to India.
Last Mile Assembly
Renaud Anjoran, executive vice president of Chinese electronics manufacturer Agilian Technology, said many global manufacturers have moved their final gatherings to India and have placed more capacity in the US markets from South Asian countries.
The Guangdong-based company is currently renovating its Indian facility and plans to move some of its production to the country. “India’s plans are moving forward as quickly as possible,” Anjaran said. The company plans to start production of the trial just before it rises towards a full-scale manufacturing industry.
That said, An Jo Ran said that compared to China, Indian and Vietnamese manufacturing industries have lower yield rates, an indicator of manufacturing efficiency.
The shipment, which represents the number of devices sent to the retailer, does not reflect the final sale, but is a proxy for market demand.
Overall, according to Canalys, iPhone shipments to the US fell to 13.3 million units in the second quarter and fell to 13.3 million units in the second quarter, overturning 25.7% growth in the last quarter. Globally, according to Canalys, the number fell 2% worldwide to 44.8 million units from April to June to June.
Stocks apple This year, it has raised some concerns about high exposure to tariff uncertainty and increased competition in the smartphone and artificial intelligence sector.
The company has started assembling iPhone 16 Pro models in India, but Canalys said it still relies on China’s more mature manufacturing infrastructure to meet the demand for premium models.
In April, Trump imposed a 26% tariff on imports from India. This was much lower than China’s three-digit tariffs at the time, before suspending duties until August 1.
– CNBC’s Arjun Kharpal contributed to this story.
