How Apple And Samsung Are Thriving In India's Slowing Smartphone Market

(MENAFN- Live Mint)

New Delhi: Even as India's $45-billion smartphone economy is in the throes of a long-drawn slowdown, Apple and Samsung logged over 20% year-on-year (y-o-y) sales growth in the June quarter-compared to 7% y-o-y for the overall smartphone industry-powered by rising demand for the most expensive premium devices in the country that are priced three to four times the market average.

The secret sauce appears to be an expansion of brick-and-mortar stores-swanky setups, 'immersive' experiences, premium hi-tech smartphones (think foldable), advanced AI-led features that ask for physical touch and feel, and brand-trained consultants - to pull away from the slump.

This week, Apple opened two new flagship outlets in Bengaluru and Pune - only its third and fourth stores in the country-drawing thousands of walk-ins and, potentially, multimillion-dollar first-day sales. Samsung, meanwhile, is leaning on its vast retail footprint that goes deep into India's smallest towns, to showcase its latest foldable phones and AI-driven features.

“Experiential marketing is changing everything, especially as we're trying to convince buyers to look at the full portfolio of our gadgets, which also feature artificial intelligence," said Raju Pullan, senior vice-president and head of Samsung's mobile business in India.

Also Read | Thanks to the GST boost, TVs may steal the festivespotlight from smartphone

In a statement, Deirdre O'Brien, senior vice president, retail and people at Apple, said,“We can't wait to connect with people here and inspire them to create, collaborate, and do amazing things with Apple. We're excited to continue to bring Apple experiences to customers across India, who inspire us with their creativity and passion."

Navkendar Singh, associate vice-president at market researcher International Data Corp. (IDC) India, said an increasing push for offline retail across the country has been observed,“and this factor is even more amplified for Apple-whose in-store experience is a class apart from the rest of the industry".

For Samsung, the Korean major is increasingly showcasing its niche features to win over customers, according to Singh.“You look at their foldable phones-these devices have use cases that need a person to experience up close, rather than online," he said.

This surge comes in the backdrop of slowing sales for the overall smartphone market, which according to Singh, may shrink slightly or remain flat for all of 2025.“Physical smartphone experiences, however-especially for premium devices-will continue to find a rising audience," he said.

Also Read | Apple rings up over three years of record iPhone sales in Indi

A person inside Apple's Bengaluru store, which opened on Tuesday, said the company completed nearly 5,000 billings from customers on the day of opening. This person requested anonymity since he was not authorized to comment to the media. In addition, the company's Koregaon Park outlet in Pune opened on Thursday.

While Mint could not determine the exact amount the Bengaluru outlet grossed on day one, three people who closely observed its two previous store openings estimated that the company may have grossed over $2 million on the first day-even as it came during a weak sales period ahead of the launch of Apple's new-generation hardware.

Meanwhile, data sourced by Mint from IDC showed that Samsung retained the top revenue spot in the Indian smartphone market-driven largely by growth in demand for premium smartphones.

Devices priced at higher than ₹70,000 saw a growth of 16% y-o-y in sales this June quarter, with 2.6 million such phones sold during this period alone. Samsung topped sales of flagship phones with a 49% share in June quarter, driven by its new foldable phones. Apple was a close second, with 48%.

Also Read | Samsung, OnePlus woes threaten premium smartphone growth in Indi

Samsung's Pullan said the company is expanding its franchise outlets even in tier-V cities with dedicated experience zones and brand-trained consultants.“We've employed 22,000 such consultants across India, and are demoing AI in our devices across over 20,000 stores," he said.

The two brands deploy different strategies, but are unified in their push for physical retail. Apple now fully owns four retail outlets, but it also sells via more than 3,000 third-party standalone and multi-brand stores across the country, according to analysts.

Samsung has over 2,000 franchise-owned, franchise-operated 'exclusive' stores that sell its entire portfolio of gadgets and home appliances, Pullan said, adding that taking third-party multi-brand retailers into account, the company has a presence across over 100,000 stores in the country.

Since the launch of its latest flagships-the Galaxy S25 series-in January this year, the company has also started equipping its in-store experience zones with Wi-Fi, Pullan said.“We're training the retail staff to encourage users to log in and see what a difference the AI features make. If you don't show these features in-person, you'll never convince the buyers to make the purchase. Now, we're instantly seeing more buyers come in because of the ability to experience such features," he added.

Also Read | Apple stays on India iPhone call for now in spite of Trump's tantru

Apple's retail store experience works in tandem with how many haute couture fashion brands operate around the world-showcasing closely-curated experiences and customer service as their main aspects. The company is on track to break into the top-five of the Indian smartphone space by market share this year, with analysts across IDC, Counterpoint, CyberMedia Research and others projecting iPhone shipments to cross 15 million units in 2025.

Samsung, meanwhile, has seen shipments recover after a weak 2024. IDC data accessed by Mint showed that Samsung's overall smartphone sales dipped 19% last year. However, as the company's push to showcase more premium experiences unfolds in offline retail, its sales are showing signs of recovery in a yet-another tepid year for phones. In the first half this year, Samsung sold 10.6 million phones overall-up 8% y-o-y, thanks to its rising in-store experiences.

MENAFN04092025007365015876ID1110020297