India Smartphone Market Set for Growth Amidst Economic Hopes and Manufacturing Hype

India's smartphone market is on the verge of growing in 2025, fueled by a healthy economic outlook and rising worldwide interest in Indian manufacturing. The market weathered the challenges of the first quarter but should bounce back and seize emerging prospects. The following is a detailed analysis:

 

Key Highlights
 

Economic and Manufacturing Boost:

 

India's economic solidity and government supports for indigenous manufacturing have made the nation a worldwide hotspot for mobile phone production.

 

Compared to China and Vietnam, reduced tariffs make "Made in India" phones cheaper to import for foreign buyers.

 

Q1 Performance:

 

Mobile phone shipments in Q1 2025 fell by 7% compared to last year because of excessive inventories and less new launches.

 

Companies concentrated on reducing excess inventory to stabilize business and set the stage for sustainable growth.

 

Premiumization Trend:

 

Ultra-premium segment (devices > ₹45,000) increased by 15% year-over-year, indicating robust consumer demand for premium devices.

 

Average selling prices (ASP) hit record levels, aided by financing schemes and trade-in initiatives.

 

5G Adoption:

 

5G smartphones accounted for a record-high 87% of total shipments in Q1 2025.

 

The sub-₹10,000 segment experienced exponential growth in 5G adoption, indicating its penetration into budget segments.

 

Market Leaders:

 

Vivo dominated the market with a 22% share, followed by Samsung with 17% and Oppo with 15%.

 

Apple achieved its all-time Q1 volumes in India, leading the premium segment with a 29% year-on-year growth.

 

Future Outlook:

 

The market will grow at a low single-digit rate in 2025, led by economic optimism and global interest in Indian manufacturing.

 

Greater bilateral trade between the U.S. and India can further solidify India's position as a smartphone production hub.

 

This report highlights India's potential to be a world leader in making smartphones and points towards the changing consumer trends in the market.

 

Sources: Tribune India, Fortune India, The Hindu Business Line, Economic Times