India’s Smartphone Market Rings 3% Growth In July-September
India’s smartphone market grew 3% YoY in the third quarter of the calendar year 2025, reaching 48.4 million units shipped, as per the latest research from Omdia, which cautioned that despite early momentum, gains are unlikely to sustain into a strong year-end.
The modest growth was driven by a wave of new launches in July and August, retail incentivisation and an earlier festive season that pulled forward inventory flows, Omdia said.
Key Drivers of Growth
Vendors filled the channels with new stocks in expectation of a high-demand festive period. According to Omdia, vivo (excluding iQOO) extended its lead in the market with 9.7 million units shipped (20% market share), while Samsung ranked second with 6.8 million units (14% market share) followed by Xiaomi in the third spot, narrowly overtaking OPPO (excluding OnePlus), with both vendors shipping 6.5 million units.
Apple returned to the top five with 4.9 million units, with incremental growth driven by smaller tier cities. Apple posted its highest-ever shipments in India in Q3, securing 10% share, Sanyam Chaurasia, Principal Analyst at Omdia, noted.
Challenges Ahead
‘With limited organic demand, Q3’s momentum was largely sustained through incentive-led channel push rather than pure consumer recovery,’ Chaurasia noted.
On the Q3 smartphone market scorecard, Omdia noted that vendors reallocated marketing budgets to high-impact retail incentive programs that rewarded sell-through, ranging from cash-per-unit bonuses to tiered margins and dealer contests with rewards such as gold coins, bikes, and international trips.
Such incentives motivated distributors and retailers to absorb higher inventory ahead of the festive season. At the same time, vendors intensified consumer-facing schemes, from zero-down-payment EMIs, micro-instalment plans, bundled accessories and extended warranties, to drive conversions.
Inventory Concerns
However, inventory concerns loom for the October-December period.
‘Despite early momentum, Q3’s gains are unlikely to sustain into a strong year-end,’ says Chaurasia, who believes that while government-led reforms such as GST reductions on large appliances lifted overall retail sentiment, smartphone-specific demand recovery remains limited.
‘Urban consumers continue to delay upgrades due to employment uncertainties and rising cost sensitivity, despite better product availability and financing schemes. As a result, sell-out traction lags behind shipment growth, raising concerns of inventory build-up in Q4, especially after November,’ Chaurasia said.
Investment Opportunities
Rural demand, in contrast, has been relatively stable, but insufficient to offset cautious urban sentiment.
‘For full-year 2025, we continue to expect a modest decline, reflecting a fragile recovery cycle that remains highly sensitive to economic tailwinds and channel correction dynamics,’ Chaurasia added.
Investors looking to capitalize on the growth of the smartphone market in India can consider investing in companies that are well-positioned to take advantage of the increasing demand for smartphones. Some of the top stock market tips for investors include:
- Research and development: Companies that invest in research and development are more likely to stay ahead of the competition and capitalize on new trends and technologies.
- Marketing and advertising: Companies that have a strong marketing and advertising strategy are more likely to reach a wider audience and increase sales.
- Partnerships and collaborations: Companies that form partnerships and collaborations with other companies can expand their reach and offer more comprehensive solutions to customers.
Investors can also consider investing in multiple stock brokers to diversify their portfolio and minimize risk. Additionally, investors can consider investing in online trading platforms to take advantage of the growing demand for online trading.
