According to an International Data Corporation’s (IDC) report, India’s smartphone market shipped 32 million smartphones in first quarter (Q1) of 2025, with a 5.5 per cent decline year-on-year (YoY), making it the second consecutive quarter of decline in shipments. Weak consumer demand and surplus inventory from the previous quarter continue to pose challenges.
Apple registered the highest YoY growth of 23 per cent amongst the top five brands, shipping a first-quarter record of three million units in Q1 2025. iPhone 16 was the highest shipped model, accounting for 4 per cent of overall India shipments during the quarter.
The report mentioned that average selling price (ASPs) reached a record of $274 in Q1 2025, growing by 4 per cent YoY. The mass-budget ($100 to $200) segment declined by 21.9 per cent YoY, with a 40 per cent share, down from 48 per cent a year ago. The premium segment ($600 to $800) registered the highest growth of 78.6 per cent, with share up from 2 per cent to 4 per cent. iPhone 16 alone accounted for 32 per cent of the shipments in this segment. The mid-premium segment ($400 to $600) also saw strong growth of 74 per cent, with share reaching 6 per cent from 3 per cent. Apple and Samsung’s share increased in this segment, led by iPhone 13 and Galaxy A56.
It highlighted that 29 million 5G smartphones were shipped in the quarter. The share of 5G smartphone shipments increased to 88 per cent, up from 69 per cent in Q1 2024, with ASPs declining by 11 per cent YoY to $300. Within 5G, the share of the low-end (sub- $100) segment reached 7 per cent led by affordable new launches, while 45 per cent of the shipments were still within the mass budget segment of ($100 to $200). Apple iPhone 16, Xiaomi Redmi 14C, OPPO K12x/A3x and realme 14x were the highest shipped 5G models in 1Q25.
Meanwhile, Qualcomm-based shipments grew by 40.8 per cent YoY, at 31.8 per cent share, led by affordable offerings like Xiaomi’s Redmi 14C, while MediaTek’s share declined to 43.6 per cent from 55.3 per cent on a shipment decline of 25.5 per cent YoY in Q1 2025.
The report also mentioned that shipments to offline channels grew by 10 per cent YoY and share increased to 58.1 per cent, while online channel shipments declined by 21.1 per cent in Q1 2025. The share of online channels dropped to 41.9 per cent, the lowest since Q3 2019. This was the result of an ongoing omnichannel strategy by almost all brands, spreading footprints into smaller towns/cities, offering attractive channel margins and support, which should remain in the upcoming quarters as well. vivo continued to lead in the offline channel, followed by OPPO and Samsung. Within the online channel, Samsung and Motorola held the first and second slot respectively, while realme went up to the third slot compared to 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.
Further, the report estimated 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 ($200 to US$400) for upgraders, and marketing generative artificial intelligence features across price points.
Commenting on the report, Aditya Rampal, senior market analyst, devices research, IDC Asia Pacific, said, “The first two months of the year saw fewer launches with brands focusing on offering retail support, discounts, and price drops on older models to clear inventory. However, new launches picked up in March across price segments with enhanced marketing activities to drive demand.”
Meanwhile, Upasana Joshi, senior research manager, devices research, IDC Asia Pacific, said, “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.”
