New Delhi: India is becoming a force in the worldwide smartphone market as the third-largest value market, as per recent data provided by Counterpoint Research. This has seen the country grow its market share steadily due to high demand for high-quality devices and localised production. As such economic giants as China and the UK experience recessions, India has been growing, and its impact on the tech sector has already become prominent.
This is supported by the fact that the big players such as Apple and Samsung are increasing their production in India in order to fulfil both the local and the international markets. The Indian smartphone market is expected to reach more than $50 billion in the year 2025, and the premium devices will be the driving force behind this figure. Local manufacturing has been strengthened by government programmes like the Production-Linked Incentive (PLI) scheme; thus, India has become a very important country in the global supply chain.
Premium devices drive market growth
The Indian market growth is significantly driven by the demand forpremium smartphones, especially those of the Apple and Samsung brands. The iPhone 16 has recorded the highest sales in Apple history, with a projected 14-15 million units to be shipped in 2025 as compared to 12 million in 2024. The concentration on the flagship S series by Samsung has been successful and is attracting consumers who desire novel technological benefits such as artificial intelligence (AI) and 5G networks. The high-end market segment (greater than Rs 30,000) is estimated to dominate more than 20 percent of the market share this year.
Local manufacturing fuels export surge
The emergence of India as a manufacturing centre has made India a top smartphone exporter. In 2024, smartphone exports rose to $24.14 billion, 55 percent above that of the prior year, compared to conventional exports, such as petroleum and diamonds. In these exports, Apple and Samsung contributed to almost 94 percent, and India replaced China to become the largest smartphone exporter to the US. The local production has been reinforced by state-supported initiatives such as the PLI and Electronics Components Manufacturing Scheme (ECMS), which is allowing India to produce 20 percent of the global smartphone production output by 2025.
The Indian smartphone market is very competitive, with Vivo having more volumes with a 20% market share and Apple taking the lead with 26% in market share in Q1 2025 with regard to value. Newcomers such as Nothing have also taken their toll, with a 156 percent growth per year due to innovative design. The average selling price (ASP) is rising to record highs, and consumers are now focusing more on high-end features, including AI features and 5G, as they drive the average selling price above $300. Nevertheless, the value-for-money segment (Rs 7,000 – 25,000) recorded a 6 percent decrease, which was an indication of increasing premiumisation.
Future for India’s smartphone industry
The smartphone market in India is projected to be growing in high single digits in 2025 with the help of a recovering macroeconomic environment and a high level of consumer confidence. Shipments will be further increased due to the emphasis on the production of local components and the improvement of infrastructure, including improved ports and air cargo centres. Following the change in the global supply chain where single-country sourcing has been abandoned, India stands in a good position to cement the occurrence of global smartphone manufacturing, as analysts forecast the future growth to rise in 2026 and beyond.