NEW DELHI: India’s smartphone market is set to surpass $50 billion in value by 2025, driven by the ongoing trend of premiumisation, according to the latest research from Counterpoint Research. This significant growth is the result of Indian consumers increasingly opting for smartphones with enhanced features and capabilities, as opposed to sticking with budget-friendly options.
Consumers willing to pay more
In simple terms, more and more Indian consumers are willing to spend more on smartphones that offer improved specifications, such as better cameras, faster processors, and premium designs. As a result, the smartphone market is experiencing a shift toward higher-end models, which is driving up the average selling price (ASP) of devices. By 2025, it’s expected that the retail ASP of smartphones in India will cross $300 for the first time, a notable milestone in the country’s mobile industry.
The premium segment is particularly booming. Indian consumers are now more inclined to purchase devices priced around ₹30,000 (approximately $350) and above, a trend that is expected to push the premium segment’s market share to over 20% by 2025. According to the report, this shift is being driven by a value-centric approach from smartphone brands, which are focusing on high-specification devices to meet the rising demand for premium products.
Apple, Samsung lead the race
In terms of market leaders, global brands like Apple and Samsung are at the forefront of this shift. Apple is expected to see strong demand for its iPhone Pro models, driven by local manufacturing and recent price cuts across its iPhone lineup. Samsung, on the other hand, is focusing on value-driven strategies, particularly with its flagship Galaxy S series, to capture a significant share of the premium market.
Other brands
Meanwhile, Chinese smartphone maker OnePlus is also targeting the high-end segment with the launch of its OnePlus 13, aiming to increase its presence in the ultra-premium market (₹45,000 and above, or $525). In the affordable premium category (₹30,000–₹45,000 or $350–$525), brands like Vivo, OPPO, and OnePlus are offering smartphones with advanced camera systems and refined design aesthetics to attract consumers looking for high-quality features without the ultra-high price tags. Vivo’s V series, enhanced by its partnership with ZEISS, and OPPO’s Reno series are both performing strongly in retail channels.
OnePlus is making a notable comeback after some quality issues earlier in the year related to its display and motherboard components. By addressing these concerns and investing ₹6,000 crore ($720 million) in expanding its local presence, the brand is expected to regain consumer confidence and grow its market share, particularly in the premium segment. The company’s investment will likely accelerate its recovery and contribute to the expansion of India’s overall premium market.
Other Reasons for Premiumisation
The trend toward premiumisation is also being driven by changing shopping habits. Consumers are increasingly opting for offline stores where they can experience high-end smartphones firsthand before making a purchase. This hands-on approach is particularly important as AI-powered features in devices become more prevalent. Consumers are eager to see these innovations in action before committing to a purchase, making offline retail stores a key touchpoint for many.
As a result of these shifts, India’s smartphone market is rapidly evolving. The increasing demand for premium devices is not only shaping the future of the market but is also helping propel the sector toward a projected $50 billion valuation by 2025. This growth marks a new chapter for India’s mobile industry, as consumers prioritize quality and advanced technology in their purchasing decisions.