According to a report by Counterpoint Research, India’s smartphone shipments in first quarter (Q1) of 2025 declined seven per cent year-on-year (YoY). The market entered 2025 with high inventory levels, which impacted shipments during the first quarter. Besides, there was a 26 per cent YoY drop in the number of new launches.
As per the report, 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. Xiaomi, on the other hand, 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 three per cent YoY growth, driven by portfolio expansion through the new P series and the 14 Pro series.
The report highlighted that Nothing was the fastest-growing brand during the quarter, recording a 156 per cent YoY growth driven by the newly launched 3a series. This marked the fifth consecutive quarter where Nothing held the position of the fastest-growing brand in India. Further, Motorola continued its growth trajectory with a 59 per cent YoY increase, driven largely by strong demand from offline channels.
MediaTek led India’s smartphone chipset market with a 45 per cent share, followed by Qualcomm at 32 per cent. Furthermore, 5G smartphones captured a record-high share of 87 per cent in total shipments in Q1 2025. Remarkably, the sub-Rs 10,000 segment witnessed an exponential surge in 5G adoption, with its four-digit YoY growth highlighting the accelerated diffusion of 5G into the mass-market entry-level segment. Offline channels remained strong during the quarter, accounting for 65 per cent of the overall market. Brands ramped up in-store promotions and regional outreach, especially in Tier 2 and Tier 3 cities. The online share was steady at 35 per cent.
The report also mentioned that India’s smartphone market is expected to grow at a low single-digit rate this year, 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 US importers, while the potential for enhanced bilateral trade between the US and India could further strengthen the country’s appeal as a global smartphone manufacturing hub.
Commenting on the report, Prachir Singh, senior research analyst, Counterpoint Research, said, “In Q1 2025, India’s smartphone market shifted its focus towards preparing for more sustainable and structured growth. Key brands, dealing with high inventory levels, prioritised clearing excess stock to stabilise operations and set a stronger foundation for the remainder of the year. Despite this inventory adjustment, consumer demand for ultra-premium products remained strong. As a result, the ultra-premium segment (more than Rs 45,000) saw 15 per cent YoY growth, while the average selling price (ASP) increased at an 11 per cent CAGR post-COVID, highlighting a shift toward premium devices. This continued premiumisation trend was further supported by growing affordability and expanding financing options, which made high-end devices accessible to a broader consumer base. However, despite low inflation and government efforts to push spending, consumer sentiment remained cautious, especially in the budget segment.”
Meanwhile, Shubham Singh, research analyst, Counterpoint Research, said, “In Q1 2025, vivo further strengthened its leadership in India’s smartphone market, recording 9 per cent YoY growth and marking its third consecutive quarter at the top. This performance was largely driven by strong traction for its sub-Rs 15,000 offerings, particularly the Y29 5G and T4x models. Samsung climbed to the second spot this quarter, 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 per cent YoY growth and its highest-ever Q1 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.”
