Apple’s iPhone Shatters Records in India’s Slowing Smartphone Market
While India's smartphone market hits the brakes, Apple's iPhone is flooring the accelerator.
The Premium Paradox
In a landscape where overall shipments are stuttering, Apple has executed a classic luxury play. The iPhone's market share isn't just growing—it's hitting historic highs. Consumers, it seems, are opting to buy one premium device over multiple budget alternatives. It's a masterclass in brand power during economic uncertainty.
Resilience in a Downturn
The trend reveals a fascinating consumer shift. Even as broader demand softens, the appetite for top-tier technology remains ravenous. Apple's ecosystem—a walled garden of hardware, software, and services—continues to command fierce loyalty, insulating it from the sector's wider chill.
One cynical finance jab? Wall Street analysts will spin this as 'resilient demand in key growth markets,' neatly ignoring the fact that selling fewer, more expensive things to wealthier customers is just a fancier form of market shrinkage. The iPhone isn't just gaining share; it's highlighting the growing gap in the market it leaves behind.
Apple expands stores and adjusts pricing strategy
India’s broader phone market, however, stayed stuck in place. Total shipments held steady at between 152 million and 153 million devices for the full year, according to market estimates.
Tarun Pathak, who heads devices and ecosystems research at Counterpoint, pointed to several factors behind Apple’s gains. He cited the company’s range of phone models, increasing demand from buyers who see the iPhone as a status symbol, and better distribution across different sales networks.
Apple executives have been highlighting India’s importance in recent months. During an earnings call in October, CEO Tim Cook said the company “set an all-time revenue record in India.” Chief Financial Officer Kevan Parekh added that active iPhone users in the country hit their highest level ever, while buyers upgrading from older iPhones reached a quarterly peak. The company didn’t break out specific India revenue numbers during that call.
Apple has also been building up its presence on the ground. Last month, the company opened its fifth retail store in India, located in Noida. That marked another step in a store expansion push that kicked off in 2023. The company has also been increasing the number of iPhones made inside India’s borders.
Earlier this month, Apple rolled out a new subscription package called Apple Creator Studio in India. The bundle, which includes creative software like Final Cut Pro and Logic Pro, costs ₹399 per month, or about $4.35. That price sits roughly 66% below the $12.99 monthly charge in the United States, showing how Apple is adjusting its pricing strategy for the Indian market.
Premium phones gain ground as overall sales stall
The robust iPhone performance coincided with a difficult period for the Indian phone market as a whole. According to Counterpoint’s tracking, total shipments have remained close to 152 million units for the past four years. Despite the often hectic holiday shopping season, shipments actually decreased by 8% to 10% in the latter three months of 2025 compared to the same period the previous year.
Pathak gave a number of explanations for the stopped growth. Individuals are keeping their phones longer before getting new ones. The number of people switching from basic feature phones to smartphones is declining. And more buyers are turning to refurbished handsets instead of new ones.
Phones at higher price points continued to gain ground, but overall sales remained unchanged. Devices priced above ₹30,000, roughly $327, grew 15% during 2025 compared to the previous year. These pricier models made up 23% of all phones shipped, the largest portion ever recorded, according to Counterpoint data.
That shift toward expensive phones has worked in favor of brands like Apple that focus on the higher end of the market, even as cheaper phone sales slowed down.
Looking at total unit shipments, Chinese brand Vivo led the Indian market in 2025 with a 23% share, Counterpoint reported. Samsung came in second with 15%, followed by Xiaomi at 13%.
Despite its record results, Apple didn’t crack the top three sellers by volume. That underscores how Android brands targeting budget-conscious buyers still control most of India’s market, even as premium devices claim a growing share.
For 2026, Counterpoint predicts India’s smartphone market will shrink by about 2%. The firm warned that rising memory prices could hurt demand for cheaper phones priced below ₹15,000, under $170. Phone makers might respond by cutting back on cashback deals, reducing phone specs, or pushing prices higher.
Still, average phone prices are expected to climb 5% in 2026, following a 9% increase in 2025. That suggests the trend toward pricier phones will continue.
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