India became the largest source of smartphones shipped to the United States in the second quarter, accounting for 44% of imports, research firm Canalys said. The country’s share was just 13% a year earlier, while China’s contribution fell to 25% from 61%. Vietnam ranked second with 30%. Canalys said shipments from India surged 240% year-on-year, marking the first time China has been displaced at the top of the U.S. supply chain for the devices. The swing reflects Apple Inc.’s accelerated “China-plus-one” strategy. The company has expanded production of iPhone 16 Pro models in India and plans to manufacture about a quarter of all iPhones there within a few years. Apple’s move comes amid U.S. tariffs that now impose a 145% duty on most Chinese goods and the prospect of a 26% levy on Indian imports, creating pressure to diversify assembly locations even though smartphones currently enjoy exemptions. Overall U.S. smartphone demand remained muted. Shipments edged up 1% in the quarter, Canalys said. Apple’s U.S. volumes fell 11% to 13.3 million units, trimming its market share to 49% from 56%, while Samsung Electronics gained ground with an 8.3 million-unit tally—up 38% year on year—raising its share to 31%. Canalys expects lingering tariff uncertainty and cost-of-living pressures to keep demand subdued through the second half. Apple is scheduled to report earnings on July 31, when analysts expect the company to outline how its expanding Indian production base and the evolving tariff landscape may affect margins and supply in the remainder of 2025.