New Delhi, April 21 (IANS) Apple achieved its best-ever first quarter shipments (Q1 2025) in India, driven by strong iPhone 16 series momentum and compelling offers across ecommerce and large format retailers (LFRs) during the Republic Day promotions, a report said on Monday.

The introduction of the iPhone 16e allowed Apple to deepen its reach into tier 2 and tier 3 cities, according to a report by market research firm Canalys.

“Despite starting the quarter with elevated inventory and a 23 per cent year-on-year drop in total shipments, Samsung witnessed 5 per cent annual growth in its S25 series versus S24 in Q1 2024, driven by premium momentum and conversational AI features,” said Sanyam Chaurasia, Senior Analyst at Canalys (now part of Omdia).

For both brands, ecosystem stickiness and premium-led channel execution will be key strategic levers in the coming quarters, he mentioned.

As broader demand softens, brands like Apple and Samsung are anchoring their strategies around upgrade intent and higher average selling price (ASP) plays.

The evolving US tariff landscape strengthens India's position in the global smartphone value chain, but demand volatility will test the market in the coming quarters.

“The tariff changes open the door for increased local manufacturing, with smartphone exports expected to benefit. However, demand-side risks persist, particularly in export-reliant sectors facing softer global demand due to higher US prices,” according to Chaurasia.

Smartphone demand was already tapering, with the pandemic-led replacement cycle winding down by mid-2025.

With limited organic growth drivers and reliance on channel dynamics, the market is expected to grow modestly in 2025.

“Still, 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,” according to the report.

Overall, India’s smartphone market entered 2025 on a cautious note. According to the report, smartphone shipments in India stood at 32.4 million units.

Vivo retained the top spot with 7.0 million shipment units and a 22 per cent 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 per cent market share, the report mentioned.