Smartphones become India’s largest product export to the US, overtaking diamonds: Report

This trend began in the December quarter of FY24 when smartphone exports to the US hit $1.42 billion, overtaking diamond exports at $1.3 billion.

Smartphones, primarily driven by Apple Inc’s iPhones, have emerged as India’s largest product export to the United States, surpassing non-industrial diamonds in value over the past three quarters, the Business Standard has reported.

Smartphone exports reached $2 billion in the June quarter, compared to $1.44 billion for non-industrial diamonds, the report, citing the latest data from the department of commerce, said.

The trend began in the December quarter of FY24 when smartphone exports to the US hit $1.42 billion, overtaking diamond exports at $1.3 billion. By the final quarter of FY24, smartphone exports surged by 43 percent quarter-on-quarter to $2.02 billion, while diamond exports declined 4.6 percent to $1.24 billion, the report said.

Moneycontrol couldn’t verify the report independently.

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In the September quarter of FY24, smartphones ranked the fourth-largest export from India to the US.

The rise in smartphone exports, particularly iPhones, reflects the success of India’s production-linked incentive (PLI) scheme for mobile devices.

Before the introduction of PLI, smartphone exports totalled $1.6 billion in global shipments in FY19, with only $5 million designated for the US market.

By FY23, Apple exported over $5 billion worth of iPhones from India, contributing significantly to the country’s total smartphone exports of $11.1 billion, with more than $2.15 billion of that destined for the US.

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In FY24, iPhone exports soared to $10 billion, accounting for 66 percent of smartphone exports, which amounted to $15.6 billion.

During the period, smartphone exports to the US surged by 158 percent to $5.56 billion, making it India’s second-largest export to the US after diamonds. US shipments now account for nearly 50 percent of Apple’s iPhone exports from India.

Despite the impressive growth, India’s smartphone exports account for only a small share of the US smartphone import market. In 2022 and 2023, the US imported $66 billion and $59.6 billion worth of smartphones, respectively, alongside $55 billion and $46.3 billion worth of laptops and tablets, primarily from China and Vietnam.

India’s exports comprise about 10 percent of the US smartphone import market, indicating potential for further growth if the country can lower costs and enhance competitiveness against China and Vietnam.