According to the agency’s most recent assessment, the Chinese smartphone manufacturer’s shipments fell during the January–March quarter as it struggled to get traction for its new launches due to bloated inventory levels.
According to Counterpoint Research, Xiaomi’s market share in India, which includes its sub-brand Poco, fell to 13% in Q1 2025 from 19% the previous year due to weak demand and high inventory levels. This was the company’s biggest loss to date. On the other hand, during a difficult quarter, major competitors mainly remained stable.
According to the agency’s most recent assessment, the Chinese smartphone manufacturer’s shipments fell during the January–March quarter as it struggled to get traction for its new launches due to bloated inventory levels.
Shipments to Xiaomi decreased during the quarter, mostly as a result of increased inventory levels. The Redmi Note 14 series, Redmi 14C 5G, and Redmi A4 5G were introduced, but their market uptake was less than anticipated. According to the market tracker’s study, this led the brand to take a more cautious stance and concentrate on stock clearing.
A different Canalys study on April 21 reflected the same pattern. Xiaomi’s market share dropped to 12% from 18% in Q1 2024, the biggest decline among major companies, as shipments, including those of its sub-brand Poco, were projected to have dropped by an astounding 38%.
On the other hand, competitors fared better during the quarter. Samsung took second place with a share that dropped just one percentage point to 17%. Oppo, which includes OnePlus shipments, remained in third place with 15% of the market, while Vivo, which includes iQoo shipments, led with 22%. Realme increased to 11% by one point.
Meanwhile, Apple kept growing. The iPhone manufacturer reported its best-ever Q1 volume increase in India, up 29% year over year, solidifying Apple’s leadership in the premium market. With Apple leading the market by value, the impressive performance highlights the growing consumer desire for high-end gadgets.
India’s smartphone shipments fell 7% year-over-year in Q1 2025 as a result of the market’s struggles with excess inventory and a steep 26% drop in new launches.
The Indian smartphone market began focusing on getting ready for more structured and sustainable growth in the first quarter of 2025. Senior research analyst Prachir Singh stated, “Key brands, facing high inventory levels, prioritized clearing excess stock to stabilize operations and set a stronger foundation for the remainder of the year.”
The demand for ultra-premium cellphones held steady in spite of the inventory correction.
As a result, the average selling price (ASP) rose at an 11% CAGR after COVID, indicating a trend toward premium devices, while the ultra-premium market (>INR 45,000) saw 15% YoY growth. Growing affordability and a wider range of financing alternatives further bolstered this ongoing premiumization trend, making high-end devices available to a wider range of consumers, Singh added.
Despite low inflation and government-driven initiatives to increase spending, consumer attitude remained cautious, which caused the budget segment to continue to underperform.
Nothing was the fastest-growing emerging brand, with 156% YoY growth driven by its recently released 3a line. This was the seventh consecutive quarter that it topped the growth charts. Strong offline traction propelled Motorola’s 59% growth.
With a 45% market share, MediaTek leads the chipset market, while Qualcomm comes in second with 32%.
Adoption of 5G also hit a record level. In Q1 2025, 5G smartphones made up a record 87% of all shipments, according to Counterpoint. The sub-Rs 10,000 sector had four-digit year-over-year (YoY) growth, indicating that mass-market adoption is rising quickly.
