Vivo Reports 7% Year-over-Year Decline in Indian Smartphone Market for Q1 2025
The Indian smartphone market faced a challenging start to 2025, with a notable seven percent decline in shipments compared to the previous year, according to a report by Cyber Media Research. Vivo emerged as the leading brand, capturing a 20 percent market share, while Samsung followed closely behind. The report also highlighted a significant drop in feature phone shipments, which plummeted by 37 percent year-on-year. Despite the overall downturn, the premium smartphone segment experienced growth, driven by increasing demand for 5G and AI-enabled devices.
Decline in Smartphone Shipments
The CyberMedia Research (CMR) India Mobile Handset Market Review Report for the first quarter of 2025 revealed a seven percent year-on-year decrease in smartphone shipments. This decline is attributed to shifting consumer preferences and intensified competition among brands. While the overall market struggled, the premium smartphone segment showed resilience, benefiting from a surge in demand for devices equipped with advanced 5G technology and artificial intelligence features.
Vivo maintained its position as the market leader with a 20 percent share, while Samsung secured the second spot with an 18 percent share. Xiaomi, despite facing a significant 37 percent decline in shipments, held the third position with a 13 percent market share. Oppo and Realme followed in fourth and fifth places, capturing 12 percent and 11 percent of the market, respectively. Notably, Motorola experienced a remarkable 53 percent year-on-year growth, attributed to its competitive 5G offerings.
Growth of 5G Smartphones
In the first quarter of 2025, 5G smartphones accounted for an impressive 86 percent of total smartphone shipments, reflecting a 14 percent increase compared to the previous year. The report indicated that affordable 5G models, particularly those priced between Rs. 8,000 and Rs. 13,000, saw a significant surge in demand, with shipments more than doubling from the previous year. Vivo led the 5G segment with a 21 percent market share, closely followed by Samsung at 19 percent.
Vivo’s success in the 5G market can be attributed to popular models such as the Vivo Y29, Vivo T3 Lite, and Vivo T4X, which contributed significantly to its overall shipments. Conversely, Samsung reported a 13 percent decline in its overall smartphone shipments. Xiaomi, while holding the third position, faced a substantial drop in shipments, while Oppo and Realme maintained their standings in the fourth and fifth positions, respectively.
Feature Phone Market Challenges
The feature phone segment experienced a dramatic decline, with shipments dropping by 37 percent year-on-year in the first quarter of 2025. The 2G feature phone market was led by Itel Mobile, which captured a 41 percent share, followed by Lava at 31 percent and HMD at 19 percent. The report also noted that the 2G feature phone segment fell by 17 percent, while 4G feature phones saw a sharp decline of 66 percent year-on-year.
The market for affordable smartphones, particularly those priced under Rs. 7,000, saw a modest three percent growth year-on-year. However, the value-for-money segment, which includes devices priced between Rs. 7,000 and Rs. 25,000, experienced a six percent decline. This trend indicates a shifting consumer focus towards more affordable options, particularly in the 5G segment.
Future Outlook for the Smartphone Market
Looking ahead, Cyber Media Research anticipates that the Indian smartphone market will experience moderate growth, with shipments expected to increase in single digits over the coming months. The report highlights a strong consumer appetite for affordable 5G smartphones, particularly among brands like Xiaomi, Poco, Motorola, and Realme. As the market continues to evolve, the demand for innovative and budget-friendly devices will likely shape the future landscape of the Indian smartphone industry.
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