India's smartphone market made a strong comeback in Q2 2025, posting an 8% year-on-year (YoY) growth in shipment volume and an 18% increase in wholesale value, according to the latest Counterpoint Research report. This marks a significant recovery from the subdued performance in Q1 2025, and highlights rising consumer confidence, aggressive marketing, and improved macroeconomic conditions that fueled demand across segments.

iPhone 16 Emerges as the Most-Preferred Smartphone

In a surprising turn that underscores India's evolving tech preferences, the iPhone 16 became the most-shipped smartphone in Q2 2025. This indicates a shifting consumer trend towards premium and ultra-premium devices.

Apple maintained a stronghold in the premium segment, capturing a 23% share in overall market value, the same as Samsung, which also saw strong consumer acceptance across various price tiers.

Despite Apple’s success in value share, vivo led the market in shipment volume, commanding a 20% share, driven by a well-balanced portfolio that spanned from budget to premium devices. Samsung followed closely with 16%, while Oppo (13%), realme (10%), and Xiaomi (8%) completed the top five in volume terms.

Value Market Sees All-Time High in Q2

The wholesale value of the smartphone market surged 18% YoY, supported by a clear push from consumers toward higher-priced models. This trend resulted in the highest-ever Q2 figures in terms of both market value and average selling price (ASP).

Samsung and Apple, with 23% market share each in value, clearly led the high-value segment. vivo stood at 15%, followed by Oppo (10%), realme (6%), and OnePlus (4%), reflecting the competitiveness in India's value-driven smartphone space.

Ultra-Premium Segment Witnesses Explosive Growth

The ultra-premium segment, comprising smartphones priced above ₹45,000 (approximately US$ 513.65), recorded a 37% YoY growth, making it the fastest-growing category in Q2 2025.

This shift signals a clear transformation in consumer behaviour, driven by aspirations, brand trust, and easy affordability. The push was amplified by attractive exchange offers, bundled deals, EMI options, and discounted online sales, making premium handsets more accessible than ever before.

Surge in New Launches, Strong Summer Sales

A major driver behind this surge was a 33% YoY increase in new smartphone launches during Q2. Brands strategically timed their product releases with aggressive summer promotions, especially in mid and premium tiers, which were bundled with cashback deals and EMI financing schemes. This encouraged consumers to upgrade their smartphones sooner.

In addition, strong in-store promotions, particularly by offline retailers and exclusive brand outlets, ensured high visibility and availability of flagship and mid-range phones. This was supplemented by consistent online flash sales, creating buzz and demand spikes throughout the quarter.

Macroeconomic Tailwinds Push Demand

The smartphone market’s rebound was further supported by favourable macroeconomic factors. India witnessed an easing of retail inflation, which dropped to a six-year low, and the Reserve Bank of India (RBI) implemented repo rate cuts, lowering the cost of borrowing.

This translated into more affordable consumer credit, making equated monthly instalments (EMIs) cheaper and widely available. Combined with additional tax relief measures, consumers enjoyed increased disposable income, spurring discretionary spending, especially in electronics and lifestyle segments.

Segment-Wise Performance

Mid-range and premium segments continued to dominate, with a healthy demand from urban India. Tier-1 and Tier-2 cities accounted for a bulk of the high-end sales, particularly due to increasing digital literacy, improved financing infrastructure, and rising aspirations.

The budget segment, while still significant in terms of volume, saw slower growth compared to premium and mid-range categories. However, brands like realme and Xiaomi retained their stronghold in this space with well-priced feature-rich models.

Market Outlook for H2 2025

Looking ahead to H2 2025, analysts remain optimistic about sustained momentum in the smartphone sector. With festive season sales on the horizon, industry experts forecast further improvement in both volume and value terms. The arrival of 5G-enabled devices at lower price points, increased localization of manufacturing, and brand diversification are likely to play key roles in shaping the next half of the year.

Furthermore, the consumer upgrade cycle appears to be shortening, as users switch phones more frequently, drawn by better cameras, faster processors, and larger storage options. Combined with India's increasing internet penetration and mobile-first economy, this trend bodes well for smartphone manufacturers.

Conclusion

Q2 2025 showcased a remarkable turnaround for India’s smartphone industry. The 8% YoY volume growth and 18% value growth reflect a healthy and maturing market, increasingly driven by aspirational purchases and financial empowerment. iPhone 16’s rise to the top highlights the changing preferences of Indian consumers, while brands like vivo and Samsung continue to benefit from deep market penetration and diverse offerings.

With robust demand, favourable economic conditions, and intensified brand competition, India’s smartphone market is set for an eventful and promising second half of 2025.

The Upcoming IPOs in this week and coming weeks are BLT Logistics, Bhadora Industries, Highway Infrastructure, Flysbs Aviation, Parth Electricals & Engineering, Jyoti Global Plast, Essex Marine, Aaradhya Disposal Industries.

The Current active IPO are Cash Ur Drive Marketing, Renol Polychem, B.D. Industries (Pune), NSDL, Takyon Networks, Mehul Colours, M&B Engineering, Sri Lotus Developers & Realty, Aditya Infotech, Lakshmi India Finance, Kaytex Fabrics.

Start your Stock Market Journey and Apply in IPO by Opening Free Demat Account in Choice Broking FinX.

Join our Trading with CA Abhay Telegram Channel for regular Stock Market Trading and Investment Calls by CA Abhay Varn - SEBI Registered Research Analyst.