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India’s smartphone boom and premiumisation
This article is authored by Madhav Sheth, founder, NxtQuantum Shift Technologies and CEO, Ai+ Smartphone.
The latest Counterpoint Research numbers make for impressive reading. In the second quarter of 2025, smartphone shipments in India grew by 8%in volume and an even stronger 18% in value. The average selling price (ASP) has reached its highest level ever recorded. To many, this is a sign of progress — proof that India is “premiumising,” that consumers are buying more expensive devices and that the market is moving up the value chain. But the truth is more complicated.
Behind these headline figures lies a growing divide. Counterpoint’s data also reveals that over 70% of all smartphones sold in India still cost less than ₹20,000. This means that while a small, affluent group of consumers is driving record revenues, the vast mass market — hundreds of millions of users — is being left behind. What India is witnessing is not genuine premiumisation; it is polarisation.
When industries begin chasing averages instead of access, growth starts to narrow. The numbers may look healthy, but participation shrinks. ASPs rise, but trust erodes. A truly mature market is one that brings more people into the fold, not one that prices them out. Economic growth cannot be sustainable if it is exclusionary. The smartphone, once seen as the great equaliser in India’s digital revolution, risks becoming a symbol of divide — between those who can afford seamless connectivity and those left struggling with compromised devices.
The next 200 million Indians who will define the country’s smartphone growth are not luxury buyers. They are pragmatic, value-conscious, and deeply aspirational. They want devices that last, that feel dependable, and that connect seamlessly in their own language. They care about privacy, performance, and affordability — and they want all of these without compromising access. These users are not an afterthought; they are India’s digital backbone. They are the ones who will determine whether India remains a smartphone success story or turns into a cautionary tale of digital inequality.
If brands treat this enormous segment as a low-margin obligation rather than a long-term opportunity, the entire ecosystem will slow down. Without a steady influx of new users at the base, innovation at the top will inevitably hit a ceiling. It is the broad base of accessible technology that fuels the creative and commercial ecosystem — from app developers to e-commerce platforms, from fintech innovators to digital educators. Without mass participation, even the most advanced features lose relevance.
The Indian smartphone story cannot become a tale of exclusion. It must remain a story of scale, reliability, and inclusion. The sub- ₹20,000 segment is where trust is built, loyalty is formed, and sustainable growth takes root. This is the foundation on which every premium aspiration must stand. Ignoring it in the pursuit of short-term profit risks turning India’s digital growth into a top-heavy pyramid — glittering at the top but hollow at the base.
Premiumisation should not come at the cost of participation. The companies that will truly define India’s digital future are not those chasing quick margins at the upper end of the market, but those solving for reliability, longevity, and localisation at scale. Building trust, not just selling status, will be the real differentiator in the years ahead.
Markets do not mature when prices rise. They mature when trust scales. And for India — a nation where technology has long been seen as the path to empowerment — ensuring that trust remains accessible to all is not just good economics, it is good ethics.
This article is authored by Madhav Sheth, founder, NxtQuantum Shift Technologies and CEO, Ai+ Smartphone.
