India Smartphone Shipments Decline but 5G Demand Surges

India’s smartphone shipments experienced a decline of 7% year-on-year in Q1 2025, reflecting changes in consumer preferences and increased competitiveness, as revealed by a recent report from CyberMedia Research (CMR). Although the overall market is slowing, the appetite for 5G-enabled and premium smartphones continues to grow, presenting a positive aspect for the industry.

Leading Brands in 5G Smartphone Shipments

Vivo claimed the top spot as the leading smartphone brand with a 20% market share, also dominating 5G shipments with a 21% share. Meanwhile, Apple achieved an impressive 25% year-on-year growth, reinforcing its position in the premium and ultra-premium segments, predominantly propelled by the popularity of the iPhone 16 series.

Growth of Affordable 5G Smartphones

The market for affordable 5G smartphones is rapidly expanding. Devices priced under ₹13,000 recorded over 100% year-on-year growth, with the sub-₹10,000 5G segment skyrocketing over 500%. Brands such as Xiaomi, Poco, Motorola, and Realme have led this surge. In particular, Motorola distinguished itself with a remarkable 53% year-on-year growth, attributed to its unique offerings and a strong 5G portfolio.

Brand Performance Variances

Nevertheless, not all brands experienced positive growth. Xiaomi saw a steep decline of 37%, the most significant drop among the top five brands. Samsung also faced a 13% decrease in the value-for-money segment. Conversely, Oppo achieved a growth of 8%, and Nothing saw an exceptional increase of over 200% in shipments.

Future Outlook for the Smartphone Industry

CMR projects modest single-digit growth for the smartphone sector in the upcoming quarters, influenced by the rising adoption of affordable 5G, enhanced on-device AI functionalities, and the localization of manufacturing in light of global geopolitical changes.

Prabhu Ram, VP at CyberMedia Research (CMR), remarked that as the premium segment accelerates due to AI integration, brands that do not adapt beyond price-based competition in the value-for-money segment may face challenges regarding margins and relevance. Additionally, affordable 5G is becoming a fundamental expectation amid increasing competition. With geopolitical shifts promoting local manufacturing, India is set to become a significant market and a crucial player in the global smartphone value chain.