The most recent Counterpoint Research figures are impressive to read. 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.
A growing divide exists underneath these headline figures. According to Counterpoint’s data, over 70% of all smartphones sold in India still cost less than 20,000 rupees. This indicates that the vast mass market, which includes hundreds of millions of users, is being left behind while a small, wealthy group of consumers is driving record revenues. 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. When a market is truly mature, it attracts more customers rather than drives them away. 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.
The entire ecosystem will slow down if brands treat this huge market as a low-margin obligation rather than a long-term opportunity. Innovation at the top will inevitably plateau if there isn’t a steady stream of new users at the bottom. 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 continue to be a narrative of scale, dependability, and inclusion. Trust is established, loyalty is developed, and sustainable growth begins in the sub-20,000 segment. Every premium goal must be built on this foundation. 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.
Participation should not be sacrificed as a result of premiumization. Companies that solve for reliability, longevity, and scale-up localization will truly define India’s digital future, not those chasing quick margins at the upper end of the market. Building trust, not just selling status, will be the real differentiator in the years ahead.
Markets do not mature when prices rise. They develop as trust grows. In addition, it is good ethics and good economics to ensure that trust remains accessible to all in India, a nation where technology has long been viewed as the path to empowerment.
