India smartphone shipments dip 7% in Q1 2025, but premiumisation pushes ASP to record high

India’s smartphone market witnessed a 7% year-on-year decline in shipments during the first quarter of 2025, according to the latest data from Counterpoint Research. Despite the drop in volume, the market's value trajectory remained positive, with the average selling price (ASP) reaching an all-time high for the first quarter, driven by a pronounced shift towards premium devices.

The downturn in shipments was offset by a significant move towards higher-priced smartphones. The premium segment (devices priced above ₹30,000) now accounts for a substantial portion of the market's value, reflecting consumers' growing preference for feature-rich devices. This trend has been bolstered by attractive financing options, trade-in programs, and bundled offers that make premium devices more accessible.

“Key brands, dealing with high inventory levels, prioritised clearing excess stock to stabilize operations and set a stronger foundation for the remainder of the year. Despite this inventory adjustment, consumer demand for ultra-premium products remained strong,” said Prachir Singh, senior research analyst, Counterpoint Research.

“As a result, the ultra-premium segment—more than ₹45,000—saw 15% growth from the year-ago period, while the ASP increased at an 11% CAGR post-pandemic, highlighting a shift toward premium devices. This continued premiumization trend was further supported by growing affordability and expanding financing options, which made high-end devices accessible to a broader consumer base.”

In the first quarter of 2025, vivo further strengthened its leadership in India’s smartphone market, recording 9% growth from the year-ago period and marking its third consecutive quarter at the top. This performance was largely driven by strong traction for its sub-₹15,000 offerings, particularly the Y29 5G and T4x models.

This quarter, Samsung climbed to the second spot, supported by multiple launches across price segments that helped drive momentum. The S series performed well, reaching its highest-ever share within Samsung’s premium portfolio, driven by the S25 ultra series.

Meanwhile, Apple continued its strong upward trajectory, recording 29% growth from the year-ago period, and its highest-ever first quarter volumes in India, further cementing its dominance in the premium segment. This performance underscores the growing appeal of high-end devices across the country, with Apple also leading the market in terms of value.

Oppo secured the third position, supported by the strong performance of its A3 and K series—which were effectively marketed around durability, an increasingly important consumer consideration. On the other hand, Xiaomi saw a decline in shipments during the quarter, primarily due to higher inventory levels.

Despite launching the Redmi Note 14 series, Redmi 14C 5G, and A4 5G, these models witnessed lower-than-expected consumer traction. This prompted the brand to adopt a more cautious approach, focusing on stock clearance. realme posted a modest 3% growth from the year-ago period, driven by portfolio expansion through the new P series and the 14 Pro series.

5G smartphone shipments captured their highest-ever share of 87% in the first quarter of 2025, indicating rapid adoption across price segments. The offline channel reached a post-pandemic high, accounting for 65% of sales, as consumers increasingly prefer in-person purchases for higher-end devices. MediaTek led the smartphone chipset market with a 45% share, while Qualcomm dominated the premium segment with a 35% share.

The Indian smartphone market is expected to grow in single digits in 2025, driven by a favorable economic outlook and increasing global interest in Indian manufacturing. Lower tariffs compared to China and Vietnam are positioning ‘Made in India’ devices as a more cost-effective option for U.S. importers, while the potential for enhanced bilateral trade between the U.S. and India could further strengthen the country’s appeal as a global smartphone manufacturing hub.