Smartphone Shipments in India Surge by 7.3% in Q2, Ending Two-Quarter Decline

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Smartphone Market Shifts: Budget Phones Surge, Flagships Soar, and Samsung Overtakes Apple at the High End

May 3, 2024

The Global Smartphone Market is experiencing a dynamic shift, according to the latest data from the International Data Corporation (IDC). While budget-friendly devices are gaining meaningful traction, the premium segment is witnessing explosive growth, and a notable power shift is occurring among leading manufacturers.

Devices priced under $100 (approximately Rs 8,800) have seen a remarkable 22.9% year-over-year (YoY) increase in demand. This surge is largely attributed to the popularity of Xiaomi‘s Redmi A4 and A5 models, catering to price-sensitive consumers. The $100-$200 price bracket (around Rs 18,000) experienced modest growth but lost market share, indicating a potential move towards either more affordable or premium options.

Conversely, the $200-$400 segment (roughly Rs 35,000) contracted by 2.5%, suggesting increased competition or shifting consumer preferences. However,the $400-$600 range (approximately Rs 53,000) bucked the trend,growing by an notable 39.5%. Oppo and OnePlus are emerging as key players in this segment, attracting consumers seeking a balance between features and price.

The moast dramatic growth was observed in the flagship category, with phones priced between $600-$800 (around Rs 70,000) increasing by a staggering 96.4%. Apple’s iPhone 16 and iPhone 15 models were primary drivers of this expansion. At the vrey top end, exceeding $800, Samsung has overtaken Apple, capturing a ample 49% market share. This success is largely due to the strong performance of its Galaxy S25 and S24 Ultra smartphones.

These trends suggest a bifurcated market, with consumers either opting for extremely affordable devices or investing in high-end flagships. The competitive landscape is intensifying, with brands like Xiaomi, Oppo, and OnePlus challenging the dominance of Apple and Samsung. Further analysis from IDC indicates that innovation in camera technology, processing power, and display quality are key factors influencing consumer choices in the premium segment. (IDC Official Website)

Understanding Smartphone Market segmentation: The smartphone market is typically divided into price segments to analyze consumer behavior and brand performance. These segments provide insights into affordability, feature preferences, and overall market trends. The growth of budget smartphones reflects increasing accessibility, while the expansion of the premium segment indicates a willingness among consumers to spend more on advanced technology and features. (Counterpoint Research)

the Role of Emerging Markets: Growth in smartphone sales is increasingly driven by emerging markets like India,Southeast Asia,and Africa. These regions represent significant opportunities for smartphone manufacturers, notably in the budget and mid-range segments. (Statista – Smartphone Market Data)

Frequently asked Questions

• what is driving the growth of budget smartphones? The increasing demand for affordable smartphones is driven by consumers in emerging markets and those seeking basic functionality.
• Which brands are leading in the under $100 smartphone segment? Xiaomi, with its Redmi A4 and A5 models, is currently the dominant player in this price range.
• Why is the flagship smartphone market growing so rapidly? Consumers are increasingly willing to invest in premium features, advanced technology, and brand prestige.
• What factors contributed to Samsung surpassing Apple in the $800+ segment? The success of samsung’s Galaxy S25 and S24 Ultra, coupled with innovative features, has driven its market share gains.
• Is the $200-$400 smartphone segment declining? Yes, the segment has experienced a contraction, possibly due to competition from both cheaper and more expensive options.
• What does this market shift mean for consumers? Consumers have more choices than ever, with options available at every price point, and increased competition is likely to drive innovation.
• Where can I find more detailed smartphone market data? Resources like IDC, Counterpoint Research, and Statista provide comprehensive reports and analysis.

Disclaimer: This article provides general facts about smartphone market trends. Market conditions are subject to change, and individual consumer

What factors contributed to the 7.3% surge in smartphone shipments in India during Q2 2025?

India’s smartphone market is back on the rise. After experiencing two consecutive quarters of decline,smartphone shipments in India witnessed a significant rebound in Q2 2025,surging by 7.3%. This positive trend signals renewed consumer confidence and a revitalized mobile phone industry within the world’s most populous nation – currently exceeding 1.4 billion inhabitants [1]. This article dives into the key drivers behind this growth, analyzes the performance of major brands, and explores the future outlook for the Indian smartphone market.

Key Drivers fueling the Growth

Several factors contributed to the notable 7.3% growth in smartphone shipments during Q2 2025:

Pent-up Demand: Following periods of economic uncertainty and reduced consumer spending, a significant amount of pent-up demand was released as economic conditions stabilized.

Aggressive Promotional Offers: Smartphone manufacturers and retailers implemented attractive discounts, exchange programs, and financing options to incentivize purchases. These promotions proved notably effective in attracting price-sensitive consumers.

5G adoption: The continued rollout of 5G networks across India is driving demand for 5G-enabled smartphones.Consumers are increasingly seeking devices that can leverage the faster speeds and improved connectivity offered by 5G.

Feature Phone to Smartphone Transition: A ample portion of the Indian population still uses feature phones. Ongoing efforts to make smartphones more affordable are encouraging a gradual transition from feature phones to smartphones, expanding the overall market.

Government Initiatives: Government programs promoting digital literacy and financial inclusion are contributing to increased smartphone adoption, particularly in rural areas.

Brand Performance: Who’s Leading the Charge?

While overall shipments increased, the performance varied considerably across different brands. Here’s a snapshot of how key players fared in Q2 2025:

Samsung: Maintained its leading position, capitalizing on its strong brand reputation and diverse product portfolio. Samsung focused on premium smartphone sales, experiencing growth in the higher price segments.

Xiaomi: Showed strong recovery, driven by aggressive marketing campaigns and the launch of new models targeting the mid-range segment.

Vivo: Continued to perform well, particularly in offline channels, leveraging its extensive retail network.

Oppo: Focused on camera-centric smartphones and innovative designs, attracting a younger demographic.

Realme: Targeted budget-conscious consumers with affordable 5G smartphones, gaining significant market share.

Apple: Experienced substantial growth in the premium segment,driven by strong brand loyalty and the popularity of its latest iPhone models.

The Rise of 5G Smartphones in India

The demand for 5G smartphones is a major catalyst for growth. In Q2 2025, 5G smartphone shipments accounted for over 55% of total smartphone shipments, a significant increase from the previous quarter.

Price point Reduction: The average selling price (ASP) of 5G smartphones has been steadily decreasing, making them more accessible to a wider range of consumers.

Network Availability: As 5G network coverage expands, consumers are more willing to invest in 5G-enabled devices.

Consumer Awareness: Increased awareness of the benefits of 5G technology is driving demand for compatible smartphones.

Impact of the “Newly Industrialized Country” Status

India’s recent recognition as a “newly industrialized country” [1] has a ripple effect on the smartphone market.Increased foreign investment, a growing middle class, and rising disposable incomes are all contributing to higher consumer spending on smartphones. This economic progress is fostering a more competitive market, encouraging innovation, and driving down prices.

Regional Trends: Urban vs. Rural India

The growth in smartphone shipments wasn’t uniform across all regions of India.

Tier 1 Cities: Continued to be the primary drivers of demand,with consumers prioritizing premium features and the latest technologies.

Tier 2 & 3 Cities: Witnessed faster growth rates as smartphone penetration increased and affordability improved.

Rural India: Remains a key growth opportunity, with a large untapped market of feature phone users ready to upgrade to smartphones. Targeted marketing campaigns and affordable smartphone options are crucial for penetrating this segment.

Future Outlook: What to Expect in the Coming Quarters

analysts predict that the positive momentum in the Indian smartphone market will continue in the coming quarters.

Continued 5G Growth: 5G smartphone shipments are expected to dominate the market,with further price reductions and network expansion.

Focus on Innovation: Manufacturers will likely focus on introducing innovative features, such as foldable displays, advanced camera technologies, and enhanced battery life.

Increased Competition: The market will remain highly competitive, with both established players and emerging brands vying for market share.

* Government Policies: Government policies related to local manufacturing and import duties will continue to shape the industry landscape.