iPhone shipments drop 11% as supply chain moves to India

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The US smartphone market is going through some big changes as uncertainty around tariffs continues to affect both sales and supply chains. 

According to a new report from research firm Canalys, smartphone shipments in the US grew just 1% in the second quarter of 2025. 

However, Apple saw an 11% drop in iPhone shipments compared to the same time last year, falling to 13.3 million units.

Earlier in the year, Apple had experienced strong growth, a 25% jump in Q1, largely because customers rushed to buy expensive phones before expected tariff increases. 

But in Q2, that demand dropped. 

At the same time, cheaper models from other brands gained popularity, and rising living costs in the US made people more cautious about spending.

A major shift is also happening behind the scenes in how smartphones are shipped to the US. For years, most smartphones came from China. 

But now, India has stepped in as a major supplier. Shipments from India grew by 240% compared to last year. 

In fact, 44% of all smartphones imported into the US now come from India, up from just 13% in Q2 2024. 

Meanwhile, China’s share dropped from 61% to 25%. 

This is part of a broader strategy by Apple and other manufacturers to reduce their reliance on China, and experts believe India could be making 25% of all iPhones globally by 2025.

Samsung, one of Apple’s biggest competitors, had a strong quarter thanks to new affordable A-series phones. 

Samsung’s shipments rose by 38%, reaching 8.3 million units, and its US market share grew from 23% to 31%, while Apple’s dropped from 56% to 49%.

Experts say that even if Apple gets exemptions from some tariffs, consumer spending will likely remain weak in the second half of 2025. 

Apple will share more details during its July 31 earnings call, where tariffs and their impact are expected to be key topics of discussion.

Do you think the shift from Chinese to Indian smartphone manufacturing will benefit US consumers in the long run? Or will supply chain disruptions and tariff uncertainty continue to drive up prices? Tell us below in the comments, or reach us via our Twitter or Facebook.