Indians are spending more money on phone purchases
With more buyers opting for higher-value devices, the market has begun to recover from its slow start to the year.
More Indian smartphone shoppers are back in physical stores, and it’s changing what they buy. Customers often walk in with a set budget but leave with a phone that costs 20 or 30% more because it “felt worth it” after they held it in their hands. That shift back to physical stores is nudging buyers toward pricier devices and helping push India’s smartphone market upmarket.
IDC’s latest numbers indicate that the average selling price in the second quarter of 2025 reached a record $275, almost 11% higher than last year. The willingness to pay more is spreading across mid- and upper-price tiers, and brands like Apple and Samsung are finding demand well.
With more buyers opting for higher-value devices, the market has begun to recover from its slow start to the year. IDC data shows that India shipped 70 million smartphones in the first half of 2025, a 0.9% increase from the same period last year. But Q2 alone accounted for 37 million of those shipments, up 7.3% YoY. New launches, price cuts on older models, and aggressive marketing have all helped push things forward.
Following the money
The price segmentation makes the trend clearer. The sub-$100 category grew shipments by almost 23%, thanks largely to Xiaomi’s Redmi A4 and A5. Meanwhile, the $100–$200 range still commands the largest share, but it has lost ground compared to last year. Devices in the $200–$400 range also declined, though Motorola bucked the trend. In contrast, the $400–$600 segment expanded by nearly 40%, and the $600–$800 segment almost doubled, with iPhones making up the majority. At the very top end, in the $800+ bracket, Samsung narrowly overtook Apple, led by the Galaxy S25 and S24 Ultra.
Apple’s momentum in the premium category remains unmatched. In the first half of 2025, it shipped 5.9 million iPhones in India, up 21.5% from last year. The iPhone 16 was the single most shipped model in the country, accounting for 4% of all sales. This success stands in sharp contrast to the budget Android segment, where rising prices have dampened demand.
Shopping shifts
The renewed strength of physical stores has played a central role in this upmarket shift. Shipments to offline outlets grew 14.3% in Q2, pushing their market share to 53.6%. Brands have invested in better margins for dealers, price drops, and in-store promoters to guide buyers through the options. Meanwhile, online channels have stabilized, holding a 46.4% share after earlier declines.
The top smartphone brands in India
As the market reshapes, it is reflected in brand performance. Vivo continues to lead the market for the sixth consecutive quarter, growing its share from 16.5% to 19%. Its strength lies in a broad portfolio that covers nearly every price point, backed by a strong presence in both online and offline channels.
Samsung holds second place with a 14.5% share, boosted by fresh Galaxy A, M, and F models that bring AI-enabled features into the mid-range. Oppo is third at 13.4%, supported by the success of its K13 and A5x models and a stronger push on after-sales service.
On the other hand, Xiaomi, once a market leader, has slipped further, holding a smaller share compared to a year ago despite growth in the entry-level segment. Its Redmi A4 and A5 models have helped retain budget-conscious buyers, but rising competition in the sub-$200 category is squeezing volumes.
Realme’s numbers have also softened, with shipments dropping year over year. OnePlus, which had enjoyed a surge in earlier years, is now seeing slower momentum
Perhaps the most notable gains come from newer or more niche players. Nothing recorded an extraordinary 84.9% year-over-year growth, helped by its design-focused devices and a loyal online fan base. iQOO, riding on strong gaming-oriented models, surged 68.4%, becoming the fastest climbers in the Indian market.
Looking ahead
IDC predicts that total shipments in 2025 may decrease slightly due to ongoing macroeconomic challenges that are dampening consumer demand, even with this recent growth. An oversupply of mid-range models could leave brands carrying excess inventory into the festive season.
But, for the market to perform, the focus will shift to moving fresh models rather than relying on heavy discounts to clear out the old. For now, though, you can see the market’s energy returning, and the story it tells is simple: when people find the right phone, they’re willing to pay more for it.
