India's smartphone market set to grow over favorable economic outlook, global interest in Indian manufacturing: Report
New Delhi: India's smartphone market is expected to grow at a low single-digit rate this year, driven by a favourable economic outlook and increasing global interest in Indian manufacturing, market intelligence research firm Counterpoint Research asserted.
The central government has been aggressively promoting indigenous manufacturing of mobile phones. It also provides incentives to the manufacturers to set up shops in India.
Lower tariffs compared to China and Vietnam are positioning 'Made in India' devices as a more cost-effective option for US importers, while the potential for enhanced bilateral trade between the US and India could further strengthen the country's appeal as a global smartphone manufacturing hub, the research firm said in a report.
In the first quarter of 2025, India's smartphone shipments, however, declined - by 7 per cent year-on-year, according to the latest research from Counterpoint's Monthly India Smartphone Tracker.
The research firm noted that high inventory levels impacted shipments during the first quarter. Besides, there was a 26 per cent drop in the number of new launches.
Senior Research Analyst Prachir Singh said, "In Q1 2025, India's smartphone market shifted its focus towards preparing for more sustainable and structured growth. Key brands, dealing with high inventory levels, prioritized clearing excess stock to stabilize operations and set a stronger foundation for the remainder of the year. Despite this inventory adjustment, consumer demand for ultra-premium products remained strong."
In the January-March 2025 quarter, the ultra-premium segment (>Rs 45,000) saw 15 per cent year-on-year growth, while the average selling price (ASP) increased at an 11 per cent CAGR post-Covid, highlighting a shift toward premium devices.
"This continued premiumization trend was further supported by growing affordability and expanding financing options, which made high-end devices accessible to a broader consumer base," Singh said. Singh added, "However, despite low inflation and government efforts to push spending, consumer sentiment remained cautious, especially in the budget segment."
5G smartphones captured a record-high share of 87 per cent in total shipments in Q1 2025. Remarkably, the sub-Rs 10,000 segment witnessed an exponential surge in 5G adoption, with its four-digit year-on-year growth highlighting the accelerated diffusion of 5G into the mass-market entry-level segment.
Offline channels remained strong during the quarter, accounting for 65 per cent of the overall market. Brands ramped up in-store promotions and regional outreach, especially in Tier 2 and Tier 3 cities, Counterpoint Research noted in the report. The online share was steady at 35 per cent.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Times of Oman
6 days ago
- Times of Oman
Global smartphone shipment forecast for 2025 revised downward over tariff uncertainty: Report
New Delhi: Market intelligence research firm Counterpoint Research has lowered global smartphone shipment forecast for 2025. It has revised down its 2025 global smartphone shipment growth forecast to 1.9 per cent year-on-year from 4.2 per cent, citing uncertainties surrounding US tariffs. However, most regions will still likely see growth, except North America and China, according to Counterpoint Research's latest Market Outlook Smartphone Shipment Forecast Report. Price increases from cost pass-throughs remain a key focal point, although the tariff situation remains fluid and unpredictable. Commenting on the revised forecast, Associate Director Liz Lee commented, "All eyes are on Apple and Samsung because of their exposure to the US market. Although tariffs have played a role in our forecast revisions, we are also factoring in weakened demand not just in North America but across Europe and parts of Asia." Lee added, "We still expect positive 2025 shipment growth for Apple driven by the iPhone 16 series' strong performance in Q1 2025." Moreover, premiumisation trends remain supportive across emerging markets like India, Southeast Asia and Gulf countries - these are long-term tailwinds for iPhones, according to Lee. Counterpoint Research's current forecasts assume a relatively stable tariff environment through 2025, although the escalating rhetoric and uncertainty around trade policy could significantly impact manufacturer's pricing strategies, supply chain planning, and, ultimately, consumer demand. Commenting on projections for global smartphone shipment growth in 2025, Associate Director Ethan Qi said, "The bright spot this year - again - will likely be Huawei. We are seeing an easing around sourcing bottlenecks for key components at least through the rest of the year, which should help Huawei grab substantial share in the mid-to-lower-end segments at home."
Observer
7 days ago
- Observer
UK and India discuss cooperation amidst Lammy's visit
NEW DELHI: Britain and India on Saturday discussed expanding their "counter-terrorism" collaboration following recent fighting between India and Pakistan, Britain's foreign minister said after meeting Indian Prime Minister Narendra Modi. British foreign minister David Lammy is the highest-profile Western official to have visited both New Delhi and Islamabad since the South Asian neighbours agreed to a ceasefire last month after their worst fighting in nearly three decades. The latest tensions began in April after the killing of 26 men in Indian Kashmir that New Delhi blamed on "terrorists" backed by Pakistan, a charge Islamabad denied. India then attacked what it called "terrorist infrastructure" in Pakistan, leading to escalation from both sides until a May 10 ceasefire. "We want the situation to be maintained, but of course we recognise fragility, particularly in the backdrop of terrorism, terrorism designed to destabilise India," Lammy said in an interview at the residence of the British High Commissioner in New Delhi. "We are keen to continue to work with our Indian partners on counter-terrorism measures." He said he discussed the next steps with both Modi and Indian Foreign Minister S Jaishankar, but gave no specifics. Last year, India and Britain discussed combating the financing of terrorism, cooperation between law enforcement and judicial bodies; and information sharing. Lammy said he also discussed boosting trade between the world's fifth and sixth largest economies. The countries concluded talks for a free trade deal early last month. "I know that Prime Minister Keir Starmer is very much looking forward to coming to India very soon to sign the free trade agreement," Lammy said. "There is so much that our two nations can continue to do together." Meanwhile, Canadian Prime Minister Mark Carney invited his Indian counterpart Narendra Modi to the upcoming Group of Seven summit in a phone call, as the two sides look to mend ties after relations soured in the past two years. The leaders agreed to remain in contact and looked forward to meeting at the G7 summit later this month, a readout from Carney's office said. India is not a G7 member but can be invited as a guest to its annual gathering, which will be held this year in Kananaskis in the Canadian province of Alberta, from June 15 to 17. "Glad to receive a call from Prime Minister (Carney)... thanked him for the invitation to the G7 Summit," Modi said in a post on X. Modi also stated in his post on Friday that India and Canada would work together "with renewed vigour, guided by mutual respect and shared interests." Bilateral ties deteriorated after Canada accused India of involvement in a murder and of attempting to interfere in two recent elections. Canada expelled several top Indian diplomats and consular officials in October 2024 after linking them to the murder and alleged a broader effort to target Indian dissidents in Canada. New Delhi has denied the allegations and expelled the same number of Canadian diplomats in response. India is Canada's 10th largest trading partner and Canada is the biggest exporter of pulses, including lentils, to India. Carney, who is trying to diversify trade away from the United States, said it made sense for the G7 to invite India, since it had the fifth-largest economy in the world and was at the heart of a number of supply chains. "In addition, bilaterally, we have now agreed, importantly, to continued law enforcement dialogue, so there's been some progress on that, that recognises issues of accountability. I extended the invitation to Prime Minister Modi in that context," he told reporters in Ottawa. — Reuters
Muscat Daily
03-06-2025
- Muscat Daily
Good news expected soon on India-Oman FTA: Minister
Muscat – India and Oman are close to finalising a Free Trade Agreement (FTA), with some 'good news' expected very soon regarding the signing of the deal, according to India's Minister of Commerce and Industry, Piyush Goyal. As reported by several Indian media outlets on Monday, Goyal stated that negotiations between India and Oman on the proposed free trade agreement are progressing towards a conclusion. The talks gained renewed momentum following Goyal's visit to Muscat in January this year. The negotiations for the agreement, officially known as the Comprehensive Economic Partnership Agreement (CEPA), formally commenced in November 2023. 'I think you will see some good news very soon on the Oman FTA,' Goyal told reporters during his official visit to France, when asked whether the agreement could be concluded this year, according to PTI. Goyal was in France to hold discussions with French leaders and businesses aimed at enhancing trade and investment ties. He was also scheduled to attend a mini-ministerial meeting of the World Trade Organization (WTO) on Tuesday. Oman is India's third-largest export destination among the GCC countries. India already has a similar agreement in place with another GCC member, the United Arab Emirates, which came into effect in May 2022. India's key imports from Oman include petroleum products and urea, which together account for over 70% of total imports. Other significant imports from Oman comprise polymers of propylene and ethylene, petcoke, gypsum, chemicals, and iron and steel. Speaking about such FTAs, Goyal remarked that these agreements not only promote trade in goods and services, but also strengthen supply chains and instill confidence among businesses on both sides through stable policies and predictability, according to the PTI report. 'So, in a way, it's a big message when you conclude an FTA,' he added.
