Tariffs Drive Smartphone Manufacturers to Boost US Inventory, Shift Sourcing to India

United States smartphone shipments leaped 30% year over year in March as manufacturers raced to bring new inventory into the country ahead of the tariffs that were anticipated and then announced by the President Donald Trump administration April 2.

The increase in shipments boosted U.S. inventories by 51% compared to March 2024, Counterpoint Technology Market Research said in a Wednesday (May 14) press release.

The new tariffs also drove a shift in the country of origin of these smartphone shipments, with India’s share of U.S.-bound shipments rising from 16% in the first quarter of 2024 to 26% in the first quarter of 2025, according to the release.

Three major smartphone manufacturers — Apple, Samsung and Motorola — increased their shipments from India, per the release.

“The increase in shipments in March and early April will help insulate Apple from potential immediate pricing impacts in the U.S. through mid- to late-summer,” Counterpoint Senior Research Analyst Gerrit Schneemann said in the release. “Should the tariff situation remain unresolved with China by the time the iPhone 17 ships, we expect India to become the primary provider for U.S.-bound iPhone 17 devices.”

The shares of the two other major smartphone-exporting countries — China and Vietnam — declined. China’s share of U.S. smartphone shipments slid from 56% to 52% over the past year, while Vietnam’s share dropped from 27% to 21%, according to the release.

“The initial Vietnam tariff actions came as a surprise to many, as the first Trump administration had focused its tariff policy exclusively on China,” the release said.

Global technology market analyst firm Canalys said April 30 that the U.S. smartphone market’s growth in the first quarter was driven by Apple building up its inventory ahead of the new tariffs.

While the global smartphone market grew 0.2% year over year in the first quarter, the U.S. smartphone market increased by 12%, Canalys said.

The U.S. market is expected to experience “considerable volatility” over the next two or three quarters due to uncertainty around tariffs and weakening consumer confidence, according to Canalys.

It was reported April 25 that in response to the new tariffs, Apple plans to get all its U.S.-bound iPhones from India by the end of 2026.