February 10, 2025
India’s smartphone market is expected to grow by just 5% in 2025, as a weakening rupee may lead to higher average selling prices, limiting demand
Apple entered India’s top five smartphone brands for the first time in Q4 2024, capturing a 10% market share and shipping a record 12 million units
Vivo became the top smartphone brand in 2024, surpassing Samsung with a strong omnichannel strategy, a diverse product portfolio, and channel support
The share of 5G smartphone shipments rose to 79%, with 120 million 5G smartphones shipped, while average selling prices reached a new high of US$ 259
India’s smartphone market is set for a modest 5% year-on-year growth in 2025, with the weakening rupee expected to push up average selling prices (ASPs), potentially restricting demand. According to IDC, the market saw 151 million unit shipments in 2024, reflecting a 4% annual growth. The first half of the year posted a strong 7% growth, but momentum slowed to just 2% in the second half, a period that typically sees higher demand.
Apple made history by entering India’s top five smartphone brands for the first time in Q4 2024, securing a 10% market share with record shipments of 12 million units. Over the year, Apple ranked sixth, closely trailing Realme, and saw a 34.6% shipment increase. India is now Apple’s fourth-largest market, following the US, China, and Japan.
Vivo emerged as the market leader in 2024, surpassing Samsung with a strong presence across both online and offline channels, a broad product portfolio, and robust support from retail partners. Meanwhile, Samsung retained its dominance in online shipments, with Apple climbing to the fourth spot, driven by strong sales of the iPhone 15—the most shipped handset in the online segment.
The 5G smartphone market expanded significantly, with shipments rising to 79% of total volumes, up from 55% in 2023. A total of 120 million 5G devices were shipped in 2024, while ASPs for 5G smartphones declined by 19% to US$ 303. The most shipped 5G models included Xiaomi Redmi 13C, Apple iPhone 15, vivo Y28, Apple iPhone 13, and vivo T3X.
Despite the overall growth, ASPs in the broader smartphone market reached a record US$259 in 2024, though the increase was just 2% year-on-year, far below the double-digit growth seen in the previous three years. The entry-premium segment (US$200-US$400) recorded the fastest expansion, benefiting from consumer demand for mid-range and premium devices. The trend was further supported by financing options, including ‘No Cost EMI’ plans extending up to 24 months.
Nothing saw the highest annual growth among emerging brands, followed by Motorola and iQOO. The market also witnessed a shift in brand concentration, with the combined share of the top five vendors falling to 65% in 2024 from 76% in 2022 as smaller brands gained ground.
With generative AI features expected to become a key differentiator across price segments in 2025, brands will likely focus on expanding AI-driven capabilities beyond flagship models. Online-first brands are also expected to strengthen their offline presence to sustain growth. However, the potential impact of currency fluctuations on pricing may influence consumer demand in the coming year.
Source: Economic Times