India’s smartphone shipments in the first quarter of 2025 dropped to 32 million units, marking a 5.5% decline compared to the same period last year. This represents the second consecutive quarter of declining sales, driven by subdued consumer demand and excess inventory carried over from the previous quarter. Among the top five smartphone brands, Apple stood out with the highest year-on-year growth rate of 23%. The company achieved its best-ever first-quarter performance, shipping three million iPhones. The iPhone 16 emerged as the most popular model during the period, making up 4% of all smartphones shipped across the country.
The average selling price (ASP) reached a new high of $274, up 4% from Q1 2024. The mass-budget segment ($100–$200) experienced a steep annual drop of 21.9%, reducing its share from 48% to 40%. Meanwhile, the premium category ($600–$800) saw the strongest growth, soaring 78.6% year-on-year, with its market share doubling from 2% to 4%. Notably, the iPhone 16 alone accounted for 32% of shipments in this high-end bracket.
The mid-premium segment ($400–$600) also posted significant gains, expanding its share from 3% to 6% on the back of a 74% annual growth rate. Key contributors to this segment’s growth were Apple’s iPhone 13 and Samsung’s Galaxy A56.
In terms of connectivity, 5G smartphones continued to dominate with 29 million units shipped, representing 88% of total shipments—an increase from 69% in Q1 2024. Interestingly, the ASP of 5G-enabled devices fell 11% year-on-year to $300. The sub-$100 segment captured a 7% share of 5G shipments, driven by the launch of budget-friendly models. Still, nearly 45% of all 5G shipments were in the $100–$200 range. Leading models included Apple’s iPhone 16, Xiaomi Redmi 14C, OPPO K12x/A3x, and realme 14x.
On the chipset front, Qualcomm saw a sharp 40.8% rise in shipments, securing a 31.8% share of the market, bolstered by competitively priced devices like the Redmi 14C. In contrast, MediaTek’s market share shrank to 43.6% from 55.3% following a 25.5% drop in shipments.
Offline sales channels witnessed growth, with shipments increasing 10% year-over-year and their share climbing to 58.1%. Online channels, however, recorded a 21.1% decline in shipments, dropping their overall market share to 41.9%—the lowest since Q3 2019.
This shift reflects a broader push by brands toward omnichannel distribution strategies, expanding into smaller towns and cities and offering enhanced channel incentives. vivo retained its lead in offline retail, followed by OPPO and Samsung. In online platforms, Samsung ranked first, Motorola second, and realme climbed to third compared to the previous quarter.
Overall, the top 3 brands remained unchanged compared to the last quarter, while realme surpassed Xiaomi for the fourth slot, driven by its affordable new launches spread across 14 series, Narzo 80 series and P3 series. Nothing registered the highest growth overall, followed by Google and Motorola in 1Q25.
IDC estimates a low single-digit growth in 2025 in terms of shipments, as ASPs continue to rise, leading to a mid-single digit value growth annually. Key focus areas for brands include an effective offline strategy to increase the breadth of distribution while sustaining online momentum, multiple microfinancing options to drive affordability, offerings in the entry-premium segment (US$200<US$400) for upgraders, and marketing generative AI features across price points.
“To mitigate potential cost increases arising from geopolitical uncertainties, vendors globally will be eyeing India as a preferred manufacturing destination. This will require efforts to scale up local manufacturing, especially by India-based contract manufacturers, ensuring India to evolve as a global manufacturing hub,” says Upasana Joshi, senior research manager, Devices Research, IDC Asia Pacific.