India’s smartphone market continued to face headwinds in the first quarter of 2025, contracting 8% year-on-year to 32.4 million units, according to new data from Canalys. Leading the decline were Chinese brand Xiaomi and South Korean giant Samsung, both of which lost significant market share amid weak consumer demand and high channel inventory.
Xiaomi’s shipments, including those of its sub-brand Poco, fell a staggering 38%, bringing its market share down to 12% from 18% a year earlier — the steepest drop among all major players. Samsung followed with a 23% decline, shipping 5.1 million units and seeing its market share shrink to 16% from 19%.
“Xiaomi’s early Note 14 series launch saw a lukewarm response due to elevated inventory and cautious channel sentiment, though the Redmi 14c 5G helped maintain momentum in the affordable segment,” said Sanyam Chaurasia, Senior Analyst at Canalys.
Despite the broader downturn, China's Vivo extended its lead in the market, retaining the top spot with 7 million units shipped and a 22% market share. Other Chinese brands, Oppo (excluding OnePlus) and Realme, bucked the trend with 5% and 3% shipment growth, respectively, shipping 3.9 million and 3.5 million units, thereby solidifying their positions as the fourth- and fifth-ranked brands.
“2025 is shaping up to be another channel-driven year,” Chaurasia noted. “With consumer demand still fragile, vendors are leaning on retail activations, distributor incentives, and tight sell-out management to win market share.”
In contrast to Xiaomi and Samsung’s struggles, Apple saw its best-ever Q1 in India, propelled by strong momentum for the iPhone 16 series, Republic Day promotions, and the success of the iPhone 16e in Tier 2 and Tier 3 markets.
Although Samsung began the quarter with high inventory and a sharp YoY drop, its premium Galaxy S25 series saw 5% growth over last year’s S24 line. Features like conversational AI helped sustain traction in the high-end segment.
“As broader demand softens, brands like Apple and Samsung are anchoring their strategies around upgrade intent and higher ASP plays,” Chaurasia added. “Ecosystem stickiness and premium-led execution will be crucial going forward.”
Canalys also flagged the shifting global landscape, with US tariff changes positioning India as a stronger player in the smartphone value chain. While this bodes well for local manufacturing and exports, domestic demand remains fragile, particularly in rural areas that rely heavily on seasonal income.
“Upgrade cycles are slowing in urban centers, and only AI-led innovation and ecosystem integration will reignite demand,” Chaurasia said. “With limited organic growth drivers, 2025 is expected to be a modest growth year, though rising ASPs and a shift toward the Rs 20,000–Rs30,000 segment provide a silver lining.”
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