Whalesbook
Apple's iPhones are significantly boosting their presence in the Indian market, capturing a larger share at the expense of Android handsets, even as the overall smartphone market shows no growth. Research firm IDC reports that the market share of Android smartphones has fallen below 90% for the first time in a festive quarter, settling at 89.6% in the third quarter of 2025. Concurrently, iPhone's share in quarterly smartphone shipments in India has climbed to 10.4% in the July-September quarter, up from 6.9% in the first quarter of 2023.
This trend is underpinned by Apple's aggressive pursuit of iPhone sales in India since 2023-24, marked by a strategic shift from an exclusive premium-only positioning to a volume-driven approach. Market research firm Omdia estimates that iPhones constitute a growing portion of India's vast smartphone user base, projected to be 65-70 million this year, up from approximately 50 million in 2023. Analysts, such as Sanyam Chaurasia from Omdia, note that the migration from Android to iPhone occurs at roughly 4% annually, fueled by the aspirational appeal of iPhones and accessible financing.
iPhones now command over 70% of the premium segment ($600-800), which itself saw a substantial 43.3% year-on-year volume growth in Q3. Apple recorded its highest-ever quarterly shipments in India, reaching five million units, a 25.6% increase year-on-year, while most Android brands experienced sharp declines of 10-30%. Value-wise, Apple is estimated to hold nearly one-third of the Indian market, with its value share rising to 30.5% in Q3 2025 from 25.2% in Q1 2023, contrasting with Android's decline from 74.8% to 69.5%.
Impact
This news has a significant impact on the Indian stock market indirectly, as Apple Inc. is a major global technology company whose performance is closely watched. For Indian business, it signifies intense competition in the lucrative smartphone sector, putting pressure on domestic and international Android manufacturers operating in India. It also highlights the evolving consumer preferences and the increasing purchasing power for premium devices in the Indian market. The shift may also affect component suppliers and the broader mobile ecosystem in India.
Impact Rating: 7/10
Terms Explained
- Market Share: The percentage of total sales in an industry generated by a particular company's products or services.
- Smartphone Shipments: The number of smartphones manufactured and sent out to retailers or customers by a company.
- Festive Quarter: Refers to the period in India typically around major festivals like Diwali, when consumer spending and sales are usually high.
- YoY (Year-on-Year): A comparison of a period's performance against the same period in the previous year.
- Premium Segment: Refers to high-priced goods or services, in this context, smartphones priced above a certain threshold (here, $600-800).
- Value Share: The percentage of the total market revenue accounted for by a company's products. This differs from market share by volume.
- Parallel Imports: Goods brought into a country from another country without the permission of the intellectual property holder.