Indias smartphone market rings 3 pc growth in Jul-Sep

India's smartphone industry experienced a 3% year-on-year increase in shipments during the third quarter of 2025, totaling 48.4 million units, according to recent findings by Omdia. Despite this positive trend, the research firm cautioned that the momentum may not be sustainable as the year progresses. The growth in smartphone shipments was primarily fueled by a series of new product launches in July and August. Retail incentives and an earlier-than-usual festive season also contributed to this uplift, as vendors anticipated heightened demand and stocked up on inventory. Sanyam Chaurasia, Principal Analyst at Omdia, pointed out that the surge in shipments was largely driven by promotional strategies rather than a significant recovery in consumer demand. He emphasized that the increase in shipped units reflects products sent to distributors rather than actual sales to consumers. Leading the market was vivo, with 9.7 million units shipped, followed by Samsung at 6.8 million units. Xiaomi and OPPO closely competed, each with 6.5 million units shipped, while Apple marked its return to the top five with 4.9 million units, seeing notable growth in smaller tier cities. Apple's rise was attributed to strong demand for its older models and the new iPhone 17, backed by a robust base of existing users upgrading from previous models. Chaurasia noted that smaller cities played a crucial role in driving this demand, supported by attractive festive offers and improved product availability. In preparation for the festive season, vendors have redirected their marketing efforts towards impactful retail incentives to promote sell-through. These included cash bonuses per unit sold and dealer contests with enticing prizes. While these strategies have encouraged distributors and retailers to increase their inventory, concerns over potential overstock loom for the upcoming October-December period. Chaurasia expressed skepticism about the sustainability of Q3's gains, noting that urban consumers are hesitant to upgrade their devices due to economic uncertainties and rising costs. In contrast, rural demand has remained stable but is insufficient to counterbalance the cautious sentiment in urban areas. Looking ahead, Omdia anticipates a slight decline in the overall smartphone market for 2025, reflecting ongoing economic challenges and the need for channel corrections.