India's smartphone market is projected to cross the $50 billion mark by 2025, according to a recent report. This growth is driven by the ongoing trend of premiumisation and a focus on local manufacturing. The retail average selling price (ASP) of India's smartphone market is expected to cross the $300 mark for the first time this year, according to the latest research from Counterpoint's 'India Smartphone Outlook'.

Leading this shift are Apple and Samsung, offering competitive options in the premium and ultra-premium segments. Apple is expected to see strong demand for its Pro models, driven by local manufacturing and recent price reductions across its iPhone lineup. Meanwhile, Samsung's value-focused strategy is gaining traction, particularly with its flagship S series. OnePlus, with the launch of its flagship OnePlus 13, is aiming to increase its share in the ultra-premium segment (above Rs 45,000).

The shift towards premiumisation is also being driven by consumers increasingly opting for offline stores, where they can experience premium smartphones first-hand before making a purchase. Growing interest in AI-powered features has further motivated consumers to seek hands-on demonstrations to better understand these innovations and make more informed decisions.

The Evolving Indian Smartphone Market

The Indian smartphone market is evolving rapidly, with original equipment manufacturers (OEMs) increasingly focusing on premium launches to strengthen brand equity, showcase technological capabilities and improve profitability. In the affordable premium category (Rs 30,000-Rs 45,000), brands such as Vivo, OPPO and OnePlus are attracting consumers by offering advanced camera systems and refined CMF designs.

OnePlus plans to invest Rs 6,000 crore in local market expansion, which is expected to accelerate its growth and recovery in India. According to the report, the premium segment (Rs 30,000 and above) in the country is projected to exceed 20 per cent market share by 2025.

The Indian smartphone market is on track to achieve its highest-ever value in 2025, crossing $50 billion, according to the latest research from Counterpoint's India Smartphone Outlook. This is driven by a value-centric approach from smartphone original equipment manufacturers (OEMs) and a rising consumer push towards higher-specification devices. Brands like Apple and Samsung are leading this shift by offering competitive options in the premium and ultra-premium segments.

Challenges and Future Prospects

Apple is expected to see strong demand for its Pro models, driven by local manufacturing and recent price reductions across its iPhone lineup. Meanwhile, Samsung's value-focused strategy is gaining traction, particularly with its flagship S series. OnePlus, with the launch of its flagship OnePlus 13, is aiming to increase its share in the ultra-premium segment (>INR 45,000 ~$525).

In the affordable premium category INR 30,000-INR 45,000 (~$350-$525), brands such as Vivo, OPPO and OnePlus are attracting consumers by offering advanced camera systems and refined color, material and finish (CMF) designs. Vivo's V series, enhanced by its partnership with ZEISS, and OPPO's Reno series are performing strongly across channels.

However, cracks in Apple's strategy have surfaced. Apple is cutting iPhone prices in China, according to the Wall Street Journal. Moreover, the Supreme Court refused to overturn an antitrust decision that could cost Apple billions of dollars in App Store revenue, reported Bloomberg News. This suggests Apple may be losing its ability to keep charging high prices and imposing high switching costs on customers.