India’s Smartphone Market Grows 7% in Q2 2025 Amid Recovery from Inventory Slump

India’s smartphone market bounced back in Q2 2025 with a 7% year-on-year growth in shipments, reaching 39 million units, according to the latest data from Canalys. The rebound came after a sluggish start to the year marked by elevated inventory levels and muted vendor activity in Q1.

The turnaround was powered by a wave of product launches in the second quarter, revitalizing consumer interest despite a typically soft sales season and external pressures including extreme weather, US tariff uncertainty, and broader geopolitical tensions.

vivo Tops Market; Samsung, OPPO, Xiaomi Close Behind

vivo (excluding iQOO) emerged as the market leader, shipping 8.1 million units and capturing a 21% market share. Samsung secured second place with 6.2 million units (16% share), while OPPO (excluding OnePlus) edged into third with 5 million units. Xiaomi, also at 5 million units, slipped to fourth, followed by realme with 3.6 million.

vivo’s success was attributed to the popularity of its V50 series in Tier 1 and Tier 2 cities, bolstered by large-format retail and seasonal campaigns. The Y-series gained traction in smaller cities, while the T-series saw steady online growth. OPPO's gains came from strong offline sales of the A5 series and rising online demand for the K13.

Samsung capitalized on its strength in financing, driving mid-premium segment sales with aggressive zero-cost EMI offers on the A36 and A56. Xiaomi saw year-on-year decline but generated Q2 momentum through the Redmi 14C 5G and A5, alongside design upgrades for the Note 14 series. realme also experienced a dip, though offline demand for the C73, C75, and 14X helped mitigate the impact.

Beyond the Top Five: Rising Competition and Niche Plays

A wave of challengers beyond the top five is reshaping the competitive landscape. Apple ranked sixth, with the iPhone 16 series accounting for over half of its shipments. However, the iPhone 16e reportedly underperformed, with consumers questioning its single-camera design and underwhelming AI features.

Motorola followed in seventh place, expanding into smaller cities after a strong urban push. Infinix made gains among gaming and content-creator audiences, overtaking TECNO to become the leading TRANSSION brand in India. Notably, Nothing posted explosive 229% growth, with youth-focused designs and models like the CMF Phone 2 Pro and Phone 3a series driving volumes.

Focus Shifts to Execution Ahead of Festive Season

Looking ahead, analysts expect India’s smartphone growth in H2 2025 to rely less on new launches and more on channel execution. Brands are already ramping up incentive-driven campaigns to secure shelf space and distributor loyalty ahead of Monsoon sales and key festive periods such as Durga Puja and Diwali. These efforts include lucrative rewards—from foreign trips to vehicles—linked to sales performance.

Retail upgrades are also underway, with enhanced in-store displays, stricter quarterly targets for promoters, and increased investment in long-tenure financing schemes, especially for mid-to-premium smartphones.

Despite the Q2 recovery, Canalys projects a slight full-year decline in 2025, as India’s market continues to face structural demand headwinds.