iPhone 16 series drives Apple’s India surge; records highest Q1 shipments

Apple has marked a significant milestone by recording its highest-ever first-quarter shipments in India for Q1 2025. The achievement was primarily driven by the robust momentum of the iPhone16 series and attractive offers across e-commerce platforms and large-format retailers during the Republic Day promotions.

The iPhone 16 series, particularly the iPhone 16e, has been instrumental in expanding Apple’s reach into tier 2 and tier 3 cities in India. This strategic move was highlighted in a report by the market research firm Canalys.

Despite facing a 23% year-on-year drop in total shipments at the beginning of the quarter, Apple managed to turn the tide. This turnaround was largely due to the premium momentum and conversational AI features of the Samsung S25 series, which saw a 5% annual growth compared to the S24 series in Q1 2024. This was pointed out by Sanyam Chaurasia, Senior Analyst at Canalys, now a part of Omdia. Chaurasia further emphasized that for brands like Appleand Samsung, maintaining ecosystem stickiness and executing premium-led channel strategies will be crucial in the upcoming quarters.

As the broader demand softens, these brands are focusing their strategies around upgrade intent and higher average selling price (ASP) plays. The changing US tariff landscape has also played a significant role in strengthening India’s position in the global smartphonevalue chain. However, the market will face a test in the coming quarters due to demand volatility. Chaurasia noted that the tariff changes have paved the way for increased local manufacturing, with smartphone exports expected to benefit.

But, there are demand-side risks, especially in export-reliant sectors facing softer global demand due to higher US prices. The smartphone demand, which was already tapering due to the pandemic-led replacement cycle, is expected to wind down by mid-2025. With limited organic growth drivers and reliance on channel dynamics, the market is projected to grow modestly in 2025. However, rising ASPs and financing-backed premiumisation present a silver lining, with the sweet spot shifting toward the Rs 20,000 to Rs 30,000 (approximately $250 to $350) price band.

In 2025, India’s smartphone market started on a cautious note. Smartphone shipments in India stood at 32.4 million units. Vivo retained the top spot with 7.0 million shipment units and a 22% market share, further widening its lead. Samsung shipped 5.1 million units, while Xiaomi followed with 4.0 million units, securing third place with a 12% market share.