India’s smartphone market has been on an impressive trajectory, cementing its status as the world’s third-largest market. According to data from Counterpoint Research, reported by Business Standard, India’s share in the global smartphone market by value rose to 7.9% in the first half of 2025, up from 7.7% in the same period last year. While this may appear to be a modest increase, it reflects significant shifts in consumer preferences, export strength, and the industry’s long-term growth story.
Premiumization Driving Market Value
The biggest driver of India’s smartphone growth has been the rise in average selling price (ASP). Consumers are steadily moving away from entry-level smartphones toward mid-range and premium devices, pushing ASP up by nearly 8% year-on-year. Brands like Apple, Samsung, and OnePlus have benefited immensely from this premiumization trend, with Apple in particular witnessing record sales in India.
Interestingly, shipment volumes have shown only a slight increase. This suggests that the real growth story is not in the number of units sold but in the value captured per device. Consumers are willing to spend more on smartphones that deliver better features, superior cameras, 5G connectivity, and seamless ecosystem integration.
India as a Global Export Powerhouse
Beyond domestic sales, India has also emerged as a major player in the global smartphone export market. With exports worth $25 billion in FY25, India now ranks as the third-largest smartphone exporter, behind China and Vietnam.
Government initiatives like the Production Linked Incentive (PLI) scheme have played a crucial role in attracting global manufacturers to set up production bases in India. Companies such as Apple, Xiaomi, and Samsung have significantly expanded their local assembly lines, with India gradually positioning itself as a strong alternative to China in global supply chains.
The Entry-Level Slowdown: A Cause for Concern
While the premium segment thrives, the entry-level market has been slowing down. This is concerning because it indicates that new users are not entering the digital ecosystem at the same pace as before.
The slowdown can be attributed to several factors:
- Rising inflation affecting affordability.
- Increased ASPs making entry-level devices less attractive.
- Saturation in urban markets where smartphone penetration is already high.
If left unaddressed, this trend could hinder India’s long-term ambition of universal digital inclusion. Affordable smartphones remain essential for first-time internet users, particularly in rural regions, where smartphones are the gateway to education, healthcare, and government services.
Shifting Consumer Behavior
Another interesting observation is the shift in how Indian consumers perceive smartphones. No longer just communication devices, smartphones are now considered lifestyle products and status symbols. Features such as foldable displays, AI-powered cameras, and integrated ecosystems (smartwatches, earbuds, and smart TVs) are shaping buying decisions.
This trend has also opened opportunities for aftermarket services like extended warranties, financing schemes, and trade-in offers, which are increasingly influencing purchasing decisions.
Global Recognition for India’s Market
India’s performance is not going unnoticed on the global stage. As Ashish Kumar, Project Manager Scrum Master at Incedo Inc, noted on LinkedIn, the market’s strength lies in premium upgrades, but the slowdown in new-user entry poses a strategic challenge. For global companies, India is no longer just an emerging market—it is a key battleground for innovation and competition.
The Road Ahead
Looking forward, India’s smartphone industry has both opportunities and challenges.
- The premium segment is expected to continue growing, driven by aspirational middle-class consumers and aggressive marketing by global brands.
- 5G adoption will push demand for feature-rich smartphones.
- The government’s push for local manufacturing will further boost India’s global role.
- However, bridging the digital divide by reviving the entry-level market will be critical to ensure inclusive growth.
Conclusion
India’s journey to becoming a smartphone superpower is well underway. By climbing to 7.9% global value share, strengthening exports, and leading in premium adoption, the country has proven its resilience and growth potential despite global economic headwinds.
Yet, the challenge of onboarding new users into the digital ecosystem cannot be overlooked. As India continues to rise as both a market and a manufacturing hub, striking a balance between premium growth and affordable access will define the next chapter of its smartphone success story.
