Although India’s smartphone market stumbled in early 2025 with a 7% YoY dip in shipments, the surge in affordable 5G and AI-ready phones kept the premium segment buzzing, reshaping consumer demand and brand dynamics.
India’s smartphone market saw a 7% year-on-year (YoY) decline in shipments during the first quarter of 2025, as per the latest report by CyberMedia Research (CMR). The drop reflects evolving consumer preferences and stiffening competition; though, the premium segment grew, fuelled by increasing demand for 5G-enabled and AI-powered smartphones.
5G smartphones now account for 86% of the total smartphone shipments in India, representing a 14% YoY increase. Particularly notable was the explosive growth in the ₹8000 to ₹13,000 price bracket, where 5G shipments rose by over 100% YoY. The sub-₹10,000 5G segment witnessed a staggering 500% YoY growth, highlighting consumers’ appetite for budget 5G devices. Brands such as Xiaomi, POCO, Motorola, and realme are leading this surge.
Among the vendors, vivo led the overall smartphone market with a 20% share and topped the 5G segment as well, with a 21% market share. The vivo Y29, T3 Lite, T3X, and T4X contributed 43% of the company’s 5G shipments.
Samsung followed with an 18% share in the overall market but experienced a 13% YoY decline in the value-for-money category. Its flagship S25 Ultra continued to support its position in the premium Android segment.
Xiaomi took the third spot with a 13% market share, marking a 37% YoY decline—its sharpest among the top five brands. OPPO held 12% of the market, achieving 8% YoY growth, driven by strong performance from models like the A3X, K12X, and A3 Pro. realme followed closely with an 11% share.
Motorola posted a 53% YoY growth, backed by strong differentiation in hardware and software, alongside a robust 5G lineup. The brand has maintained double-digit growth in six of the past seven quarters. On the other hand, Transsion Group saw a 13% YoY decline, challenged by increasing competition in the budget segment.
Nothing recorded a remarkable growth of over 200% YoY, aided by the success of its new models, the Nothing Phone (3a) and (3a) Pro, which collectively contributed around 20% of its Q1 2025 shipments.
Notably, Apple’s market share climbed to 8%, supported by a 25% YoY shipment increase. The iPhone 16 series, especially the iPhone 16e, played a pivotal role in this growth. The Cupertino giant strengthened its lead in the super-premium (₹50,000 – ₹100,000) and uber-premium (>₹1,00,000) segments, registering 28% and 15% YoY growth, respectively.
The expansion of Apple’s retail footprint in India has also contributed to its market performance.
Apart from smartphones, the feature phone market saw a significant 37% YoY decline in Q1 2025. Within this, 2G feature phone shipments dropped by 17% YoY, and 4G feature phones plummeted by 66% YoY. Itel Mobile maintained dominance in this segment with a 41% share, followed by Lava at 31% and HMD at 19%.
MediaTek remained the leader in India’s smartphone chipset space with a 46% share. In comparison, Qualcomm led the premium segment (smartphones priced over ₹25,000) with a 35% share, highlighting its ongoing strength in high-end Android devices.
The report projects single-digit growth in smartphone shipments for calendar year 2025. According to Prabhu Ram, VP at CMR, the future of India’s smartphone landscape will be shaped by three key forces: widespread adoption of affordable 5G, growing presence of on-device AI, and the acceleration of local manufacturing.
“As the premium segment accelerates with AI integration, brands relying solely on price-driven strategies in the value-for-money segment risk losing margins and market relevance. Affordable 5G is becoming a basic expectation. Meanwhile, India’s strategic importance in the global smartphone value chain will rise with increasing localisation and geopolitical developments,” Ram added.
