India’s smartphone market has started 2025 on a slow and shaky note. As per new data from Canalys (now part of Omdia), total smartphone shipments fell by 8% year-on-year in Q1 2025 to 32.4 million units. The reasons? Poor consumer sentiment, slow rural demand, and channel inventory carried over from late last year.

What’s more worrying is that this inventory overhang has forced brands to rethink their retail and product launch strategies. And in a year that’s already looking more channel-led than demand-driven, the top players are leaning heavily on their offline networks to push sales.

vivo holds No.1 spot as Xiaomi, Samsung stumble

Samsung, once the consistent leader, slipped to second place with 5.1 million units shipped, down 23% compared to last year. Xiaomi saw the sharpest fall among the top five brands, down 38% year-on-year, shipping just 4 million units. The lukewarm response to its Note 14 series and cautious channel sentiment weighed it down.

Meanwhile, OPPO (excluding OnePlus) maintained steady growth with 3.9 million units, up 5% from Q1 2024, and realme climbed to 3.5 million, showing a 3% bump.

vivo took the lead again, shipping 7 million units and grabbing a 22% market share. It pulled ahead with a strong offline strategy and timely product pushes, especially the V50 and T-series. “vivo extended its lead with a balanced portfolio and sharp channel execution,” said Sanyam Chaurasia, Senior Analyst at Canalys.

iPhone demand rises in smaller cities

Samsung too saw a silver lining with its premium Galaxy S25 series growing 5% over the S24 lineup from last year. Features like AI-assisted tools and ecosystem stickiness helped them hold the line in the premium segment.

Interestingly, premium brands like Apple saw better traction despite overall demand weakness. Apple had its best-ever Q1 in India, led by iPhone 16 series and the new iPhone 16e, which helped the brand deepen its reach into Tier 2 and Tier 3 cities. Republic Day discounts on large format retailers and online platforms played a big role.

Rural slowdown, global tariffs keep the market on edge

Canalys flagged that rural demand remains fragile, hinging heavily on monsoon-linked income. Urban buyers are also slowing down upgrade cycles, making the mid-range ₹20,000–₹30,000 segment the new sweet spot.

Global factors are adding to the mix. “The evolving US tariff landscape strengthens India’s position in the global smartphone value chain,” said Chaurasia, but warned that demand-side volatility and global slowdown could still shake up exports.

The market may grow modestly through the rest of 2025, but the push will largely depend on aggressive offline activations, strategic pricing, and how fast brands can clear their stocks. The export opportunity is real, but it’s a tightrope walk from here.

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