The Indian smartphone industry faced yet another challenging quarter in Q1 2025, with overall shipments declining for the second time in a row. According to the latest report from the International Data Corporation (IDC), total smartphone shipments stood at 32 million units during the quarter — a 5.5 percent year-over-year (YoY) decrease. However, despite the slowdown, several brands showed resilience, with Vivo topping the charts and Apple recording the highest YoY growth among the top players.

Key Highlights

Indian smartphone market declined 5.5% YoY in Q1 2025.

Vivo secured the top position with a 19.7% market share.

Apple posted the highest YoY growth among top 5 brands at 23%.

iPhone 16 was the most shipped model among premium phones.

Average Selling Price (ASP) reached a record $274 (~Rs 23,300).

5G phones made up 88% of all shipments.

Weak Demand and Inventory Challenges Hurt Q1 Growth

IDC attributes the decline to weak consumer sentiment and leftover inventory from Q4 2024. Brands were cautious during the initial months of the year, focusing more on clearing unsold stock through discounts and price cuts rather than launching new models. While new smartphone releases gained momentum in March, they weren’t enough to offset the losses earlier in the quarter.

@IDC

Vivo Takes the Lead, Samsung Slips to Second Vivo emerged as the market leader in Q1 2025 with a 19.7 percent share, a notable jump from 16.2 percent YoY. The company’s aggressive offline presence and consistent mid-range offerings paid off.

Samsung, despite its strong product lineup, saw a slight YoY decline and finished second with a 16.4 percent share. OPPO and Realme followed in third and fourth place respectively, while Apple rounded out the top five.

Apple Sees Record Growth and Shipments Apple experienced an impressive 23 percent YoY growth, its highest ever for a Q1 period in India. The brand shipped over 3 million units during the quarter, driven by strong sales of the iPhone 16, which alone accounted for 4 percent of India’s total smartphone shipments in Q1.

The premium segment ($600–$800) saw a massive 78.6 percent growth, with Apple leading the charge. The iPhone 16 made up 32 percent of shipments in this category.

ASP Hits New Record, Budget Segment Shrinks

The average selling price for smartphones in India reached a new high of $274 (~Rs 23,300), reflecting a 4 percent YoY increase. This growth came at the cost of the budget segment:

The $100–$200 price band declined by 21.9 percent YoY.

Market share for this segment dropped to 40 percent, down from 48 percent a year ago.

In contrast, the mid-premium segment ($400–$600) grew 74 percent YoY.

Samsung and Apple dominated the mid-premium segment thanks to continued interest in the Galaxy A56 and iPhone 13, respectively.

5G Adoption Soars Amid Price Cuts

The transition to 5G devices continues to accelerate. Shipments of 5G smartphones grew to represent 88 percent of total volume in Q1 2025, up from 69 percent a year ago. Average prices for 5G phones dropped 11 percent YoY to around $300.

Significantly, 5G phones in the sub-$100 category (under ~Rs 8,500) accounted for 7 percent of all 5G shipments. The $100–$200 price range still held 45 percent of the 5G market share. Popular 5G models included:

Apple iPhone 16

Xiaomi Redmi 14C

OPPO K12x/A3x

Realme 14x

Chipset Trends: Qualcomm Rises, MediaTek Slips

The Q1 data shows a strong comeback from Qualcomm, whose chipset-based shipments rose 40.8 percent YoY, taking a 31.8 percent market share. This growth was led by successful launches like the Redmi 14C.

MediaTek, on the other hand, saw its market share fall to 43.6 percent from 55.3 percent, with a 25.5 percent decline in overall shipments.

Offline Channels Surge as Online Declines

Offline sales gained traction in Q1 2025, growing 10 percent YoY and accounting for 58.1 percent of total smartphone shipments. Meanwhile, online shipments fell by 21.1 percent, as brands redirected efforts toward expanding physical retail footprints, especially in tier 2 and tier 3 cities.

In the offline space:

Vivo led the market.

OPPO and Samsung held the second and third spots.

In contrast, for online channels:

Samsung retained the top position.

Motorola followed in second.

Realme dropped to third from its earlier lead.

Outlook for 2025: Modest Growth Expected

IDC forecasts only low single-digit shipment growth in 2025. Rising ASPs are expected to limit unit sales, though overall market value may see mid-single-digit growth. Brands are expected to continue focusing on 5G expansion, channel diversification, and product segmentation to maintain competitiveness.

Conclusion

Despite the downturn in Q1 2025, the Indian smartphone market remains dynamic, with shifting trends across segments. While consumer demand is cautious, growing interest in premium and 5G smartphones, along with changing brand strategies, points to an evolving ecosystem. Vivo’s rise, Apple’s premium dominance, and Qualcomm’s resurgence are key trends to watch in the quarters ahead.