US smartphone market sees sluggish growth as India-made phones surge, Canalys says

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(Reuters) -The United States smartphone market grew just 1% in the second quarter as vendors front-loaded device inventories amid tariff concerns, while supply chain negotiations between China and the United States boosted shipments of Indian-made phones, research firm Canalys said on Monday.

WHY IT’S IMPORTANT

The imposition of U.S. tariffs has prompted smartphone makers to reorganize their supply chains to avoid higher import costs and protect their margins.

China, a major hub for electronics manufacturing, has been targeted by significant tariffs, pushing hardware makers to explore other Asian countries to maintain low production costs.

CONTEXT

In response to tariffs, Apple earlier this year sought to make most of its iPhones sold in the United States at factories in India.

However, the move drew criticism from U.S. President Donald Trump, who threatened additional tariffs on the Cupertino-based company if it did not produce domestically.

KEY QUOTES

“India became the leading manufacturing hub for smartphones sold in the US for the very first time in Q2 2025, largely driven by Apple’s accelerated supply chain shift to India amid an uncertain trade landscape between the US and China,” said Sanyam Chaurasia, Principal Analyst at Canalys.

“The market only grew 1% despite vendors front-loading inventory, indicating tepid demand in an increasingly pressured economic environment and a widening gap between sell-in and sell-through,” said Runar Bjorhovde, Senior Analyst at Canalys.

BY THE NUMBERS

The share of U.S. smartphone shipments assembled in China fell from 61% in the second quarter of 2024 to 25% in the second quarter of 2025.

India picked up most of the decline, with Indian-made smartphone volume growing 240% year-on-year.

iPhone shipments declined by 11% while Samsung shipments grew 38% in the second quarter.

(Reporting by Zaheer Kachwala in Bengaluru; Editing by Tasim Zahid)