India's Smartphone Exports Grew 7% YoY Backed by New Product Launches

After two consecutive quarters of decline, India’s smartphone market showed strong signs of recovery in Q2 2025. According to Canalys, exports rose by 7% year-over-year and 21% quarter-over-quarter, totaling 39 million units. Preliminary estimates from International Data Corporation (IDC) placed the figure slightly lower, at 34–36 million units, still reflecting a modest 3–4% annual increase.

Key Factor Behind Growth: Product Launches and More

The turnaround was largely fueled by a wave of new product launches and the resolution of inventory backlogs that had carried over from late 2024. The previous quarter was marred by subdued consumer demand and excess stock, which dampened shipment volumes.

In contrast, Q2 saw aggressive market activity—especially during April and May—as vendors recalibrated their launch timelines and focused on capturing early seasonal demand.

Offline Channels Gain Momentum

Retail expansion played a crucial role in the recovery. Offline retail channels experienced a marked upswing, thanks to inventory replenishment and lucrative dealer incentives. Brands such as Vivo and Oppo led the charge, recording impressive year-over-year shipment growth of 31% and 24%, respectively.

Meanwhile, Samsung adopted a more cautious strategy, prioritizing stability over volume. Xiaomi, despite facing a 25% annual decline, rebounded sequentially, hinting at early signs of recovery.

Apple and the Premium Segment Push

Amid the broader market dynamics, Apple maintained its growth momentum, largely on the back of the iPhone 16, which accounted for over 55% of its total shipments in the quarter. Its success underscores the rising appetite for premium devices in select urban segments.

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New Product Launch Scheduled for Future

Looking ahead to the festive season, brands appear to be shifting focus from frequent product launches to channel execution and inventory positioning. According to Canalys, companies are offering high-value incentives to retailers in a bid to stimulate demand and secure shelf space, a strategy reflective of the persistently low organic demand.

Despite ongoing geopolitical uncertainties and weather-related disruptions, the industry is optimistic about the second half of 2025. A key focus will be on affordability-driven growth, with brands extending longer-term financing options, especially for mid- to high-end smartphones.

The success of H2 2025 will hinge on three main factors: retail execution, aggressive promotional activity, and competitive pricing, all aimed at unlocking festival-driven consumer spending.

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