India, once the fastest-growing smartphone market in the world, has entered a phase of decline. According to the IDC Worldwide Quarterly Mobile Phone Tracker, smartphone shipments in the country fell by 5.5% year-over-year (YoY) in the first quarter of 2025. This marks the second consecutive quarter of negative growth, indicating a shift in consumer buying behavior and broader market dynamics.
Yet, amidst the decline, one brand stood out — Apple. The iPhone maker saw record-breaking shipments of the iPhone 16, signaling a growing appetite among Indian consumers for premium smartphones.
Market Slowdown: What’s Causing the Dip?
Q1 2025 Shipment Figures
India’s smartphone market recorded 32 million units shipped in Q1 2025, a drop from the same period in 2024. This decline was primarily due to:
-
Weak consumer demand
-
Excess inventory carried over from late 2024
-
Slower upgrade cycles among users
Retailers and manufacturers resorted to aggressive discounting and price cuts on older models to move stock, but demand remained subdued.
“Brands focused more on offering retail support and price drops on older models to clear inventory.” — Aditya Rampal, IDC Asia Pacific
Mass-Budget Segment Hit Hardest
The budget smartphone segment, traditionally the backbone of the Indian market, experienced a sharp contraction. Devices priced between $100–$200 (Rs 8,000–Rs 16,000) saw a 21.9% YoY drop, with their market share falling from 48% to 40%.
This suggests that Indian consumers are moving away from entry-level devices and are willing to spend more on quality and features — a significant shift in buying behavior.
Apple Outshines Rivals: Record iPhone 16 Shipments
While the overall market shrank, Apple recorded a stunning 23% YoY growth — the highest among the top five smartphone brands in India.
iPhone 16: The Star Performer
-
3 million iPhone 16 units shipped in Q1 2025
-
Accounted for 4% of all smartphone shipments
-
Dominated the premium segment ($600–$800) with a 32% market share
This made the iPhone 16 the best-selling premium smartphone in India for the quarter.
Changing Preferences: Why Indians Are Buying Premium Phones
Several reasons contributed to Apple’s surge in sales:
-
Longer software support
-
Brand trust and aspirational value
-
Superior camera and performance features
-
Attractive financing options and trade-in programs
-
Growing demand for 5G-ready devices
Apple’s dominance in the premium segment is a clear sign that Indian consumers are now prioritizing value, longevity, and performance over price.
Premium and Mid-Premium Segments Are Booming
According to IDC, smartphones in the $400–$600 range saw a 74% YoY growth, and their market share doubled from 3% to 6%. Popular models in this bracket included:
-
iPhone 13
-
Samsung Galaxy A56
This shift is further reflected in the Average Selling Price (ASP), which reached $274 (approx. Rs 22,000) — a record high, with a 4% YoY increase.
Rise of 5G: Now the New Normal in India
The penetration of 5G smartphones accelerated significantly in Q1 2025:
-
88% of all smartphones shipped were 5G-enabled (up from 69% in Q1 2024)
-
Even sub-$100 5G phones gained popularity, taking 7% of the market
Top-Selling 5G Models
-
Apple iPhone 16
-
Xiaomi Redmi 14C
-
OPPO K12x / A3x
-
Realme 14x
Indian buyers are increasingly future-proofing their purchases by opting for 5G-capable devices, even in the budget and mid-range categories.
Offline Channels Outpace Online Sales
While online smartphone sales fell 21.1% YoY, offline sales grew 10% YoY — an unexpected trend reversal. Brands are expanding their physical retail presence, particularly in Tier-2 and Tier-3 cities, offering:
-
Better profit margins for resellers
-
Personalized customer service
-
Trust-building through hands-on experience
Top Offline and Online Performers
-
Offline Leaders: Vivo, OPPO, Samsung
-
Online Leaders: Samsung, Motorola
This shift shows that despite India’s digital boom, brick-and-mortar stores still hold sway, especially in smaller towns and cities.
What This Means for India’s Smartphone Future
India’s smartphone market is clearly undergoing a transition phase:
-
Budget dominance is declining
-
Premium and 5G phones are gaining popularity
-
Offline retail is experiencing a resurgence
-
Apple is redefining market expectations with the iPhone 16
As 2025 progresses, brands will need to adapt their strategies to align with this new reality — focusing on premium experiences, robust financing, and omnichannel sales.
FAQs:
1. Why did smartphone shipments decline in India during Q1 2025?
Smartphone shipments fell due to weak consumer demand, excess inventory, and a slowdown in upgrade cycles.
2. How did Apple perform in India during the market slowdown?
Apple grew 23% YoY and shipped 3 million iPhone 16 units, leading the premium segment with a 32% share.
3. What is the average selling price (ASP) of smartphones in India now?
As of Q1 2025, the ASP in India rose to $274, reflecting increased demand for mid-range and premium phones.
4. Are 5G smartphones popular in India?
Yes, 88% of smartphones shipped in Q1 2025 were 5G-enabled, showing rapid adoption across price ranges.
5. Is offline smartphone retail growing in India?
Yes, offline sales grew by 10% YoY, especially in smaller towns, as brands expanded their brick-and-mortar presence.
