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Strong demand for premium smartphones drives India’s third-quarter shipments

Mohammed Fahad
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Strong demand for premium smartphones drives India’s third-quarter shipments
  • IDC forecasts a YoY decline in Q4 2025 shipments and expects overall 2025 annual shipments to fall below 150 million units, signaling a likely market contraction despite sustained interest in high-end devices.

India’s smartphone market soared to a five-year high in the third quarter of 2025 (3Q25), with shipments rising 4.3 per cent year-over-year (YoY) to 48 million units, according to the latest IDC Worldwide Quarterly Mobile Phone Tracker.

The robust performance was fueled by a surge in demand for premium smartphones and successful new product launches, though the overall market remains pressured by declining demand in mass-market tiers and rising average selling prices (ASPs).

Key drivers

  • Premium momentum: Buoyant sales of premium and super-premium smartphones propelled overall growth. Attractive pricing, aggressive discounts, flexible payment plans, and enticing trade-in offers during the festive period played a crucial role in stimulating demand, especially for flagship Apple and Samsung models.
  • Apple’s record quarter: Apple achieved its highest-ever shipments in India, crossing 5 million units and capturing fourth place in the market for the first time. The iPhone 16 dominated as the most-shipped device, making up 5 per cent of total market shipments. The launch of iPhone 17 series and iPhone Air saw record-breaking debut demand, with these new models accounting for 16 per cent of Apple’s Q3 shipments—the strongest iPhone launch quarter since 2021.
  • Offline channel growth: Shipments via offline channels jumped 21.8 per cent YoY, expanding share to 56.4 per cent as brands emphasised retail promotions and trade partner incentives. Meanwhile, online sales declined 12 per cent YoY as the deepest discounts focused on higher-end models.

Segment-wise performance

  • Entry-level (sub $100): Grew 35.3 per cent YoY to 16 per cent share. Xiaomi, realme, and vivo led, together accounting for over half of shipments.
  • Mass-budget ($100–$200): Fell 8.8 per cent YoY; share declined from 45 per cent to 40 per cent. OPPO A5 and vivo T4X were top sellers.
  • Entry-premium ($200–$400): Down 4.9 per cent YoY; segment dropped to 26 per cent share. Motorola’s Edge 60 Fusion was the leading model.
  • Mid-premium ($400–$600): Rose 10.7 per cent YoY; now 4 per cent of the market, led by Samsung (notably the Galaxy S24).
  • Premium ($600–$800): Jumped 43.3 per cent YoY to a 6 per cent share. iPhone 16/15/17 made up over 70 per cent of shipments.
  • Super-premium ($800+): Soared 52.9 per cent YoY to 8 per cent share. Apple regained leadership (66 per cent share), followed by Samsung (31 per cent). Flagships including iPhone 16 Pro, Galaxy S24 Ultra, and Galaxy Z Fold7 drove demand.

Brand & channel trends

  • vivo: Maintained market leadership for the seventh consecutive quarter due to a broad portfolio and balanced retail strategy.
  • OPPO: Climbed to second place, overtaking Samsung through aggressive retail and trade promotions.
  • Motorola: Recorded the fastest YoY shipment growth (52.4 per cent) among top brands.
  • Qualcomm-based devices: Rose 17.9 per cent YoY, gaining a 29.2 per cent share, while MediaTek’s share slid to 46 per cent after a 9.7 per cent decline in shipments.
  • Offline momentum: Was bolstered by festive offers, high trade margins, and price adjustments. Online sales softened due to a focus on premium promotions, which hurt entry-level Android sales.

Challenges and outlook

The surge in the premium and super-premium segments pushed ASPs to a record $294 in Q3 2025—up 13.7 per cent YoY. However, this shift, along with inventory build-up and ongoing pressure on the mass market, creates uncertainty for the coming quarters. Brands are contending with rising component costs (especially for memory) and currency volatility, leading many to implement post-Diwali price hikes.

Looking ahead, IDC forecasts a YoY decline in Q4 2025 shipments and expects overall 2025 annual shipments to fall below 150 million units, signaling a likely market contraction despite sustained interest in high-end devices.

“Aggressive festive promotions and flexible financing options drove strong shipment volumes in Q3 2025. However, consumer demand remained concentrated in the premium segment, leaving the mass market under pressure and resulting in a significant inventory build-up heading into Q4 2025,” said Upasana Joshi, Senior Research Manager, Devices Research, IDC Asia Pacific.

Chinese hackers intensify cyber threats on Australia: Spy chief

Mohammed Fahad
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Chinese hackers intensify cyber threats on Australia: Spy chief
  • Successful attacks could cripple essential services —including banking, transportation, water supply, and power.

Australia’s top intelligence official has sounded a stark warning about the intensifying cyber threat posed by hackers linked to the Chinese government and military, revealing recent probes into the nation’s telecommunications network and critical infrastructure that could threaten the economy with sabotage.

Mike Burgess, Director-General of Security at the Australian Security Intelligence Organisation (ASIO), told business leaders in Melbourne that espionage—including cyber intrusions—cost Australia an estimated A$12.5 billion ($8.1 billion) last year. This figure includes the loss of A\2 billion in trade secrets and intellectual property.

Burgess pinpointed the activities of Chinese hacking groups “Salt Typhoon” and “Volt Typhoon,” identifying them as part of sophisticated operations directed by Chinese government intelligence and military agencies.

He noted that Salt Typhoon has targeted both US and Australian telecommunications systems as part of its broader espionage campaign. Meanwhile, Volt Typhoon is believed to seek disruptive capabilities, having compromised US critical infrastructure as a prelude to potential sabotage.

Concrete risks for Australia

“We have seen Chinese hackers probing our critical infrastructure as well,” Burgess cautioned, warning that successful cyberattacks could cripple essential services across the community—including banking, transportation, water supply, and power.

“These are not hypotheticals—foreign governments have elite teams investigating these possibilities right now,” he said, raising concerns about future scenarios such as economically motivated industrial sabotage or efforts to cause social panic during Australia’s elections.

China’s embassy in Australia has not publicly responded to the latest allegations and routinely denies involvement in hacking activities. Burgess also disclosed that Chinese officials have repeatedly lodged complaints with the Australian government and private sector following his public remarks about cyber risks from China—a campaign he said would not deter him from exposing security threats.

Google to invest €5.5b in German data centre expansion

Ana Mary Joseph
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Google to invest €5.5b in German data centre expansion
  • Germany seeks to attract tech investments to boost its economy and modernise the country.

Alphabet’s Google announced a major €5.5 billion ($6.41 billion) investment in Germany over the next several years to significantly expand its data centre infrastructure, the company and German government officials revealed.

Expansion details

  • The investment, scheduled for the 2026–2029 period, includes a newly constructed data center in Dietzenbach near Frankfurt and an expansion of Google’s existing facility in Hanau, both in the central state of Hesse.
  • Marianne Janik, Google Cloud’s Vice President for Northern Europe, said the plan will directly employ 100 people at each site, while Google’s German head, Philipp Justus, estimated the projects would secure up to 9,000 indirect jobs through economic spillover effects.
  • “The economic multiplier effect of this investment will be considerable,” Justus emphasized.

Strategic significance

Germany, recently challenged by high costs and bureaucratic hurdles, has been stepping up efforts to attract tech investments to boost its economy. Finance Minister Lars Klingbeil described Google’s move as a “truly important signal for Germany as a business location,” adding, “Our clear goal is to modernise our country and advance its economy.”

Klingbeil also referenced the recent $1.2 billion AI partnership between Deutsche Telekom and Nvidia, which underscores the rapid acceleration of digital infrastructure development in Germany.

Unlike some other large-scale tech investments, Klingbeil confirmed that Google will not be drawing on state subsidies for this project. However, he highlighted the German government’s creation of a large off-budget infrastructure fund now available to support modernisation initiatives, which is already drawing strong investor interest.

Germany’s central location, strong industrial base, and robust demand for cloud and AI services make it a strategic site for infrastructure expansion. Google’s announcement follows a series of major investments by global technology companies in Europe, reflecting growing competition to build out the backbone for next-generation digital services and AI applications.

Microsoft announces $10b AI data centre investment in Portugal

Mohammed Fahad
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Microsoft announces $10b AI data centre investment in Portugal
  • Project involves deploying 12,600 next-generation NVIDIA GPUs in the Sines facility.
  • Aims to position Portugal as a benchmark for the responsible and scalable development of AI in Europe.

Microsoft plans to invest $10 billion over the next several years in a cutting-edge artificial intelligence (AI) data center in Sines, a port city 150 km south of Lisbon.

The initiative marks one of Europe’s largest AI-focused infrastructure projects and underscores Portugal’s emerging role as a strategic tech and data hub.

Key details of investment

  • Microsoft will collaborate closely with Start Campus—a joint venture between US investment firm Davidson Kempner and the UK’s Pioneer Point Partners—alongside AI infrastructure platform Nscale and chipmaker NVIDIA.
  • The project involves deploying 12,600 next-generation NVIDIA GPUs in the Sines facility, greatly expanding the region’s AI processing power and supporting Microsoft’s cloud and AI services across Europe.
  • The Sines project is a part of Start Campus’s broader 8.5 billion euro ($9.9 billion) investment plan to establish a multi-building data centre hub by 2030. One of these six planned buildings is already operational.

Strategic significance

Microsoft’s partnership aims to position Portugal as a leader in responsible and scalable AI development.

“By strengthening the national AI infrastructure through collaboration with Nscale, NVIDIA, and Start Campus, we are helping to position Portugal as a benchmark for the responsible and scalable development of AI in Europe,” said Brad Smith, Microsoft’s Vice Chair and President.

Portugal’s Atlantic coastal location offers a unique advantage as a landing point for subsea cables connecting Europe with Africa and the Americas, reinforcing the country’s status as a backbone for global data and internet connectivity.

Additionally, Sines is attracting significant investment in renewable energy production, vital for powering the energy-intensive needs of modern data centers in a sustainable way.

Global investments in data centres have accelerated since the release of OpenAI’s ChatGPT in 2022, as cloud computing and AI integration become central to corporate strategies across industries.

SoftBank’s $5.8b Nvidia sell-off sparks AI valuation fears

Ana Mary Joseph
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SoftBank’s $5.8b Nvidia sell-off sparks AI valuation fears
  • Mood follows recent warnings from Morgan Stanley and Goldman Sachs chiefs about potential downturns and a high-profile short against Nvidia and Palantir.

SoftBank Group’s surprise $5.8 billion sale of its entire Nvidia stake jolted markets on Tuesday, highlighting growing investor unease that the red-hot artificial intelligence sector may be cresting after rapid gains and recent caution from top Wall Street leaders.

The Japanese tech conglomerate revealed in quarterly results that it exited its 32.1 million Nvidia shares in October, timing the sale to fund CEO Masayoshi Son’s sweeping ambitions in AI—most notably, the $500 billion Stargate data centre project in the US and a mammoth commitment of up to $40 billion for OpenAI, the creator of ChatGPT. Financing specifics for these AI initiatives were not disclosed.

Bubble fears

Market response was swift. Nvidia shares tumbled more than 2 per cent early Tuesday, dragging the S&P 500 lower. Concerns were amplified by CoreWeave, an AI cloud provider, which slashed its revenue forecast due to contract delays—sending its stock down 9 per cent.

The mood follows recent warnings from Morgan Stanley and Goldman Sachs chiefs about potential downturns and a high-profile short against Nvidia and Palantir from Michael Burry, famed for his bets before the 2008 financial crisis.

The sale has led some analysts to wonder whether Son, famous for audacious technology investments, is signaling that the AI-driven rally responsible for Nvidia’s transformation into a $5 trillion company last month is cooling. Nvidia shares have soared over 1,200 per cent in three years, fueled by the AI boom.

SoftBank’s moves also revive scrutiny of its checkered history with Nvidia. The company previously missed out on over $100 billion in gains by selling shares in 2019, only to repurchase them as demand spiked.

Alongside Nvidia, SoftBank sold about $9.2 billion in T-Mobile shares, amassing capital for bets on AI applications, OpenAI, and the infrastructure underpinning massive next-gen projects like Stargate.

Tighter ties to OpenAI

This deeper commitment comes as SoftBank recovers from huge losses in its Vision Fund and leans harder into OpenAI, which may be eyeing a $1 trillion public listing as early as next year—potentially transforming Microsoft and SoftBank’s fortunes.

Soaring OpenAI valuations buoyed SoftBank’s second-quarter net profits, which more than doubled. However, OpenAI has provided little clarity on plans to finance its AI infrastructure ambitions, reportedly totaling $1.4 trillion. While the firm forecasts $20 billion in annual recurring revenue this year, it has recently backed away from seeking government-backed loans.

AMD projects data centre chip revenue to hit $100b by 2030

Naushad K. Cherrayil
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AMD projects data centre chip revenue to hit $100b by 2030
  • Plans to launch its next-generation MI400 series of AI chips in 2026, targeting both scientific and generative AI applications.
  • Data centre is the largest growth opportunity out there, and one that AMD is very, very well positioned for, CEO says.

Advanced Micro Devices (AMD) predicted that its annual revenue from data centre chips would soar to $100 billion within the next five years, fueled by surging demand for artificial intelligence (AI) technologies.

The bold forecast came as the Santa Clara, California−based chipmaker outlined plans to more than triple its earnings, sending shares up by 2.7 per cent to $237.52.

The optimistic outlook was unveiled at AMD’s highly anticipated analyst day in New York—the company’s first such event in three years. CEO Lisa Su told investors the total addressable market for AMD’s data centre products, which include standard processors, networking chips, and specialised AI hardware, is expected to grow to $1 trillion by 2030.

“It’s an exciting market,” Su said. “There’s no question, data centre is the largest growth opportunity out there, and one that AMD is very, very well positioned for.”

OpenAI deal

AMD executives forecast annual business-wide growth of 35 per cent over the next three to five years, with the data centre segment expected to grow at a robust 60 per cent annually, according to Chief Financial Officer Jean Hu.

The upbeat projections come on the heels of a recent multiyear partnership with OpenAI, announced in October, which is expected to generate tens of billions in annual revenue and has driven a 16 per cent rally in AMD’s stock since the deal was released.

While the deal is not expected to immediately challenge Nvidia’s dominance in the AI chip market, analysts say the agreement and AMD’s financial projections should bolster investor confidence in AMD’s ability to capture market share.

Acquisitions

Looking ahead, AMD plans to launch its next-generation MI400 series of AI chips in 2026, targeting both scientific and generative AI applications. The suite will also feature a comprehensive server rack solution to rival Nvidia’s GB200 NVL72 system.

Beyond hardware, AMD continues to invest heavily in software and system integration, recently acquiring server builder ZT Systems and a series of AI-focused software startups, including the latest acquisition of MK1.

“We’ll continue to do AI software tuck-ins,” said Chief Strategy Officer Mat Hein, emphasising the company’s commitment to expanding its technological capabilities and talent pool.

The company also delivered a fourth-quarter revenue forecast that exceeded Wall Street expectations, buoyed by relentless demand for AI chips and strong AI-driven growth in its data centre CPU business.

Nvidia CEO Jensen Huang has likewise projected rapid industry growth, forecasting the broader AI infrastructure market to reach between $3 trillion and $4 trillion by 2030.

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