Exports of tariff-exempt mobile phones drop 58% since May
India’s smartphone shipments tumble as supply shifts and policy worries raise questions
Chennai: Despite being exempted from tariffs, mobile phones, mainly driven by iPhones, have seen a drop of 58 per cent in exports to the US between May and August this year.
While front loading has helped minimize the decline in the exports of products charged with reciprocal tariffs, sharp decline in mobile phones has intrigued many.
iPhones account for more than 90 per cent of the smartphone exports to the US. Compared to last year, iPhones have been seeing a jump in exports with Foxconn and Tata Electronics ramping up their production.
However, amidst tariff uncertainties, mobile phone shipments to the US have declined 58 per cent between May and August this year. As per the data of the Commerce ministry, in May, mobile phone shipments accounted for $2294 million. This slid to $1993 million in June, and further to $1524 million in July. As per the data from GTRI, in August, mobile phone exports were down to $964 million.
“Foxconn and Tata Electronics account for most exports of smartphones to the US. We need to find out reasons for falling exports to the US. Is production shifting back to China or Vietnam for newer models or component shortages have hit Indian assembly plants,” said Ajay Srivastava, founder of GTRI.
Meanwhile, the exports of products under the sectoral tariffs like steel, aluminium, automobiles and auto components declined only 4 per cent between May and August.
The shipment of goods coming under the reciprocal tariffs, which account for 62.7 per cent of India’s exports to the US, fell 10.8 per cent, from $4.82 billion in May to $ 4.30 billion in August 2025. The decline is mainly in labour-intensive sectors, like textiles, gems and jewellery, seafood and engineering goods. These products were being front-loaded ahead of the tariff imposition date.
