According to a report by Canalys, India’s smartphone market rebounded after a sluggish start to the year, driven by easing inventory challenges and renewed vendor activity. The smartphone shipments in India grew 7 per cent year on year (YoY) in second quarter (Q2) 2025 to reach 39.0 million units. The growth was primarily fueled by fresh launches concentrated in Q2, following a cautious Q1 where vendors held back due to elevated inventory levels. Recovery came despite a seasonally soft quarter amid multiple headwinds, including extreme weather conditions, US tariff tensions and geopolitical uncertainty. vivo (excluding iQOO) led the market with 8.1 million units shipped and a 21 per cent market share. Samsung followed in second place with 6.2 million units and a 16 per cent market share. OPPO (excluding OnePlus) climbed to third with 5 million units, edging past Xiaomi, which also shipped 5 million. realme completed the top five with 3.6 million units.
Commenting on the report, principal analyst, Canalys, said, “vivo’s new launches were widely embraced by channels, driven by strong partnerships, while rivals maintained a more measured approach in Q2. The V50 series gained traction in Tier 1 and Tier 2 cities via large-format retail and wedding-led campaigns, while the Y-series sustained momentum in smaller cities and semi-urban markets through deep distribution and promoter push. The T-series also scaled steadily online with a broadened portfolio.”
He added, “OPPO also had a solid quarter, buoyed by strong offline momentum from the A5 series and growing online traction via the K13. In contrast, other vendors focused on selective push strategies amid cautious sentiment. Samsung leveraged its financing strength in the mid-premium segment, particularly for the A36 and A56, through 18- and 24-month zero-cost EMI schemes. While Xiaomi declined year on year, it drove Q2 momentum through the Redmi 14C 5G and A5, and boosted Note 14 series visibility via a targeted design refresh. realme also declined YoY, with online softness partially offset by offline gains from the C73, C75 and 14X, together contributing 35 per cent of its shipments.”
He further added, “Heightened competition beyond the top five is reshaping India’s smartphone landscape, as premium incumbents and design-led challengers refine their playbooks. Apple ranked sixth in Q2 2025, with the iPhone 16 family accounting for over 55 per cent of its shipments, while the iPhone 15 and 13 continued to drive demand across price tiers. The iPhone 16e lost momentum post-launch, as consumers questioned the value of its single-camera design and largely unrealised Apple Intelligence features. Motorola, in seventh place, is deepening its retail reach in smaller cities following a strong urban push. Infinix gained traction through bold design-ID and campaigns targeting gaming and creator communities, overtaking TECNO to become TRANSSION’s lead brand in India and contributing 45 per cent of the group’s 1.8 million shipments. Nothing continued its explosive rise, growing 229 per cent year on year, driven by design-led innovation that resonated with young urban consumers, with volumes led by the CMF Phone 2 Pro, Phone 3a and Phone 3a Pro.”
Furthermore, “With limited organic demand, India’s smartphone market in second half(H2) 2025 will hinge more on channel execution than product launches. Brands are actively locking inventory with distributors and retailers through channel incentive programs ahead of the upcoming festive season in India. These include high-value rewards – ranging from foreign trips to vehicle rewards – tied to performance during Monsoon sales, Durga Puja and Diwali cycles. Retail infrastructure upgrades are gaining pace, with improved booth setups, structured shelf placements and stricter quarterly targets for promoter engagement and in-store execution. At the same time, brands are doubling down on affordability by expanding long-tenure financing options, especially for mid- to high-end models. While these efforts are expected to boost channel confidence and short-term sell-through, Canalys (now part of Omdia) projects a modest decline for the full-year 2025, as structural demand challenges persist.”
