Reuters
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(Reuters) -Smartphone shipments to the U.S. surged 30% in March as manufacturers Apple (AAPL), Samsung (005930.KS) and Motorola (MSI) rushed to bring more devices into the country in anticipation of steep import tariffs, Counterpoint Research said on Wednesday.
Apple (AAPL) alone airlifted a record $2 billion worth of iPhones from India in March, leveraging Indian suppliers Foxconn and Tata Electronics, to meet the demand surge, Reuters reported last month.
The surge in shipments reflects companies' efforts to sidestep hefty tariffs that could erode profits or dampen the demand for smartphones if the levies drove up prices.
Separately, the growing reliance on India and Vietnam highlights manufacturers' strategic shift to diversify supply chains away from China to reduce geopolitical risks and capitalize on the emerging production hubs.
As Apple increased its production in India in March, shipments from the country rose significantly. The iPhone maker said most of its smartphones sold in the U.S. will originate from India in the June quarter.
President Donald Trump announced a series of tariffs on April 2, prompting companies such as Apple to adjust supply chains.
However, the U.S. suspended the tariffs on smartphones and other electronic devices as part of a broader 90-day pause.
"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," said senior research analyst Gerrit Schneemann.
"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."
Apple's sales to distributors and retailers rose 42% in March, while Samsung's sell-in rose 4%.
Lenovo-owned Motorola nearly tripled its exports from India.
The country's smartphone exports to the U.S. accounted for 26% of all first-quarter shipments, up from 16% a year ago.
(Reporting by Akash Sriram in Bengaluru; Editing by Shreya Biswas)
