July 28 (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 ( AAPL ) 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 ( AAPL ) 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.