Smartphone shipments to the US surged 30 per cent in March as manufacturers Apple (AAPL.O), Samsung (005930.KS) and Motorola rushed to bring more devices into the country in anticipation of steep import tariffs, Counterpoint Research said this week.

Apple 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.

WHY IT’S IMPORTANT

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.

CONTEXT

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 US 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 US suspended the tariffs on smartphones and other electronic devices as part of a broader 90-day pause.

KEY QUOTES

“The increase in shipments in March and early April will help insulate Apple from potential immediate pricing impacts in the US 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 US-bound iPhone 17 devices.”

BY THE NUMBERS

Apple’s sales to distributors and retailers rose 42 per cent in March, while Samsung’s sell-in rose 4 per cent.

Lenovo-owned (0992.HK) Motorola nearly tripled its exports from India.

The country’s smartphone exports to the US accounted for 26 per cent of all first-quarter shipments, up from 16 per cent a year ago.