The Indian smartphone market is expected to witness significant growth in 2025, with a growth of 6 per cent year-on-year, driven by improving consumer sentiment and government measures to reduce unemployment, industry observers said on Friday.
The mobile phone production surged from Rs 18,900 crore in 2014-15 to an estimated Rs 4.10 lakh crore in FY24, registering a massive increase of 2,000 per cent, as driven by the production-linked incentive (PLI) scheme.
The Indian smartphone market has emerged as the second largest in the world by unit volume and the third largest in terms of value during the third quarter of 2024, according to the latest report by Counterpoint Research. Smartphone volume grew by 3 per cent in Q3 2024, or July-September, while value surged by a remarkable 12 per cent to record an all-time high for a single quarter.
According to Tarun Pathak, Research Director, Mobile Devices and Ecosystems at Counterpoint Research, the ongoing premiumisation trend is emerging as a key driver of this growth, reflecting consumers' aspirations for high-quality, feature-rich devices.
To leverage this momentum, brands are likely to harden their focus on the premium segment. Moreover, OEMs are expected to launch multiple models in the entry-level market with the launch of a 5G smartphone priced below Rs 10,000 in 2025," Pathak told IANS.
Several OEMs are realizing the growth potential in this segment and are likely to introduce more 5G-enabled devices to capitalize on this opportunity.
Premium demand is also seeing a growth spurt in tier-3 and tier-4 cities, where the region holds great untapped potential.
"This alignment of aspirational demand, innovative offerings, and strategic pricing has propelled India's smartphone market to achieve new milestones, with retail value now poised to surpass $50 billion," said Pathak.
CyberMedia Research (CMR) indicates strong growth momentum for 5G and AI smartphones in the country, growing at 21 per cent YoY in 2025.
"Chinese smartphone brands will focus on bringing AI capabilities in the value for money smartphone segment, especially in low tiers," Prabhu Ram, VP-Industry Research Group, CMR, told IANS.
The country's electronic exports also surged by a strong 27.4 per cent to $22.5 billion in April-November of FY 2024-25, compared with $17.66 billion during the same period in 2023-24. Smartphone exports have seen a 45 per cent increase in exports as leading players such as Apple (NASDAQ:AAPL) and Samsung (KS:005930) expand production in the country.
The country witnessed a record smartphone exports in November this year, which, for the first time, crossed the Rs 20,000 crore mark in a month, with Apple leading the way.
Read also| Elon Musk’s X Increases Premium+ Subscription Prices by 35% in India and Worldwide
Read also| India's Mobile Subscriptions Reach 115.12 Crore: Centre
