How are Affordable 5G Phones Achieving 100% Growth in India While Apple Dominates the Premium Market?

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How are Affordable 5G Phones Achieving 100% Growth in India While Apple Dominates the Premium Market?

Synopsis

Discover how affordable 5G smartphones are leading the Indian market with a remarkable 100% growth, while Apple secures its place in the premium segment. This report reveals key insights and future trends in the evolving landscape of smartphone technology in India.

Key Takeaways

  • 5G smartphone shipments reached 86% of the Indian market.
  • Affordable 5G models saw over 100% YoY growth.
  • Vivo and Samsung lead the market shares.
  • Apple's growth reflects strong demand in the premium segment.
  • Future growth will focus on AI integration and localized manufacturing.

New Delhi, May 6 (NationPress) Driven by budget-friendly devices, shipments of 5G smartphones constituted 86 percent of the total market in India for the January-March period, representing a 14 percent year-over-year increase, per a recent report.

Specifically, 5G smartphones priced between Rs 8,000 and Rs 13,000 saw over 100 percent growth YoY, showcasing the rising demand for economical 5G options, according to the report from CyberMedia Research (CMR).

Vivo emerged as the leader in the 5G smartphone sector with a 21 percent market share, followed closely by Samsung at 19 percent.

The premium segment also experienced growth, spurred by robust demand for 5G-compatible and AI-integrated smartphones, the report highlighted.

“The segment for 5G smartphones priced at Rs 10,000 and below witnessed a staggering 500 percent growth YoY in Q1 2025, indicating a strong consumer preference for budget 5G smartphones,” noted Menka Kumari, a senior analyst at CMR.

Brands like Xiaomi, POCO, Motorola, and Realme are at the forefront of this growth surge, she added.

While the affordable smartphone segment grew a modest 3 percent YoY, the value-for-money sector saw a 6 percent decline, illustrating a continuing shift towards premium models.

Apple experienced a 25 percent YoY growth, capturing an 8 percent market share, boosted by strong interest in luxury smartphones and an expanded retail footprint in India.

The iPhone 16 series, including the iPhone 16e, played a significant role in this growth, with Apple’s presence in the super-premium segment increasing by 28 percent YoY and the ultra-premium segment (Rs 1,00,000 and above) rising by 15 percent, as reported.

Looking ahead to 2025, CMR forecasts moderate growth in the Indian smartphone market, expecting shipments to rise in single digits.

“In the upcoming quarters, India's smartphone market will be influenced by three converging factors: the mainstream adoption of affordable 5G, rapid integration of on-device AI, and the increasing push for localized supply chains,” stated Prabhu Ram, VP at CyberMedia Research (CMR).

As the premium segment accelerates with AI integration, brands that do not innovate beyond price competition in the value-for-money sector may face challenges in profitability and relevance.

“At the same time, affordable 5G is becoming a standard expectation amidst growing competition. With geopolitical changes driving local manufacturing, India is set to become a pivotal player in the global smartphone value chain,” Ram remarked.

Point of View

It is crucial to acknowledge the significant shifts in the Indian smartphone landscape. The trend towards affordable 5G technology highlights changing consumer preferences, while the persistent growth of premium brands like Apple signifies a dual market trajectory that is shaping India's position in the global tech landscape.
NationPress
06/05/2025

Frequently Asked Questions

What factors contributed to the growth of affordable 5G phones in India?
The surge in demand for affordable 5G smartphones is driven by their accessibility in terms of pricing, particularly within the Rs 8,000 to Rs 13,000 range, which has seen remarkable year-over-year growth.
How did Apple's performance in the premium segment vary?
Apple experienced a 25% growth year-over-year, significantly bolstered by the release of the iPhone 16 series, capturing an 8% market share in the premium smartphone segment.
What is the outlook for the Indian smartphone market in 2025?
The Indian smartphone market is anticipated to witness moderate growth, with expected shipments increasing in single digits, as affordable 5G becomes a standard expectation.
Which brands are leading the affordable 5G smartphone segment?
Brands such as Xiaomi, POCO, Motorola, and Realme are currently at the forefront of the affordable 5G smartphone surge.
How is AI integration affecting the smartphone market?
The integration of AI technology in smartphones is driving demand in the premium segment, compelling brands to innovate beyond traditional price competition.