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.