India Q1 smartphone sales point to $45 bn market in FY25
NEW DELHI: After enduring two consecutive years of a decline, India, the world’s second-largest smartphone market, is showing signs of a recovery.
The first quarter of the year has ushered in a wave of optimism, signalling a resurgence for brands, such as Samsung, Xiaomi and Vivo, with the industry witnessing an impressive 18% rise in market value, soaring to $9.5 billion—the highest firstquarter revenue in the past five years. Despite the first quarter of a fiscal year being a relatively subdued period for sales historically, a consensus poll of four industry analysts by Mint, project a robust growth trajectory for the full year.
Forecasts indicate a potential 15% revenue surge, breaching the $45 billion mark in FY25, compared to $39 billion in the previous fiscal year. Interestingly, this bullish outlook is despite the market volumes, which is expected to remain flat compared to 2023 levels, with projections hovering at 151-155 million units. On Thursday, Counterpoint India said in a report that smartphone sales recorded an 8% growth from a year earlier, with shipments likely surpassing 33.5 million units.
The driving force behind this revival is the rise in average selling prices (ASPs) of smartphones.
According to Mint’s analyst consensus, the ASP stands at $295, or around ₹24,600—up 20% in the past two years. This trend, hints at a premiumization of India’s smartphone market, after enduring eight consecutive quarters of stagnation.
Samsung, for instance, achieved its highest-ever ASP in India in Q4 FY24, reaching $425 (₹35,500). Despite ranking third in terms of volumes, the Korean firm claimed the top spot in overall market value, capturing 25% of the $9.5 billion revenue generated during this period.