India’s smartphone shipments rebound in Q2 2025, driven by new launches and inventory push

India’s smartphone market witnessed a rebound in Q2 2025, with shipments rising after two consecutive quarters of decline. According to Canalys, shipments grew by 7% YoY and 21% sequentially, reaching 39 million units. International Data Corporation (IDC)'s preliminary estimates placed shipments at 34–36 million units, indicating a 3–4% annual increase. The recovery was largely driven by a surge in new product launches and easing of inventory bottlenecks. Q1 2025 shipments had been negatively impacted by weak consumer demand and high inventory from late 2024. However, Q2 2025 benefited from aggressive vendor activity, particularly in April and May, suggesting a shift in launch strategy. Offline retail channels also saw a significant uptick, supported by inventory expansion and attractive dealer margins, especially from brands like Vivo and Oppo, which recorded strong YoY growth of 31% and 24%, respectively. In contrast, Samsung adopted a more cautious approach, while Xiaomi rebounded sequentially despite a 25% decline from the previous year.
With the festive season ahead, smartphone brands are focusing on channel execution and inventory locking, rather than relying solely on new product launches. According to Canalys, several brands are incentivising retailers with high-value rewards to drive sales, highlighting a shift in strategy amid persistently low organic demand. Apple continued its growth trajectory, driven by strong demand for the iPhone 16, which comprised over 55% of its shipments. Despite geopolitical and climatic challenges, the industry is betting on affordability to drive volumes, offering longer financing options for mid- to high-end models. As the H2 2025 approaches, the success of India’s smartphone market will largely depend on retail execution, channel promotions, and aggressive pricing strategies to tap into festival-driven consumption.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.