India’s smartphone market is rapidly climbing up the value ladder. What was once a niche luxury segment is now one of the fastest growing segment in India. Devices priced above INR 30,000 are clocking sustained double-digit growth every year, signalling a clear shift in what Indian buyers want from their next upgrade . The premium smartphone segment (INR 30,000 and above) now captures over 20% of the overall smartphone market by volume, up from 10% in 2022

A new generation of consumers is driving this change. Young professionals, Creators, and Gen Z users are no longer satisfied with “good enough.” They want phones that look better, shoot sharper, run smoother and last longer. Many users are currently on their third or the fourth smartphone of their lifetime in India and every upgrade comes with a desirable set of features and increasingly, they are willing to pay for it.

vivo's share in India's Premium Smartphone Market

A Market Growing Taller, Not Just Bigger

The Indian market is pivoting from volume-driven growth to value-driven growth. Several factors are pushing India toward premium devices. Disposable incomes are rising; EMIs are stretching to 24 months; zero-cost financing is becoming routine; and exchange programmes have made “moving up” far more affordable.

At the same time, Indians are holding onto their phones longer than ever; often three years or more. When it’s finally time to replace them, many are choosing to upgrade a tier higher. The calculation has changed. People aren’t just asking, ‘How much does this cost?’, they’re asking, ‘What value can this bring for me over the time and how long will I be able to use it?’ They know a budget phone might save money today, but a flagship empowers them for years. Today users are spending 5.9 hours everyday on their smartphones and their dependency on smartphones has increases a lot. These devices are an extension of one’s own identity. Users are looking at the devices as an investment in their own potential, making the cost easier to justify. On top of this, brands have also positioned their launches to cater to the users in the premium space with focus on durability, stronger performance, and more reliable software and personalized experiences.

The result, premium smartphones are no longer an exception. They’re becoming an aspiration standard. With the Indian market achieving critical mass, it has become a strategic imperative for global brands to focus on Indian users’ needs and aspirations in the premium segment as well. The sheer volume of the user base has compelled manufacturers to fast-track their premium portfolios and cutting-edge innovations to India, treating it as a priority market rather than an afterthought.

Brands Double Down on the Premium Play

The industry has noticed. OEMs are sharpening their premium portfolios with better cameras, faster processors, cleaner UI, and tight ecosystem integration. Offline retail, which is still India’s biggest smartphone channel has turned into a key battleground. Brands are investing in training, in-shop promoters and highlighting premium in-store experiences to make the upgrade journey smoother. Offline channels are pivoting from “Distribution” to “Experience” when it comes to selling premium smartphones.. Brands are investing heavily in training programs to empower sales staff into sales consultants. These promoters are now equipped to explain complex concepts related to technology within the premium smartphones like AI, processor, display, cameras and some other deeper technical specifications and some are even having a social media presence as well to explain these features and attract a wider range of audience to their stores

The race is heating up, the gap is narrowing, and the consumer is gaining the most.

The Road Ahead

India’s premium smartphone segment is only getting started. Flagship cameras, compact performance devices, foldables, personalized AI features and more localized user experiences will shape the next wave of competition. The premium smartphone segment in India will grow in double-digits for the next couple of years, driven by a burgeoning middle class and the expansion of the creator economy. The high-end features are transitioning from luxuries to essential tools. Furthermore, as financing barriers go down, we anticipate a significant increase in consumer interest within this category. Increasing competition with brands diversifying their portfolio within this segment is a win-win scenario for consumers as well.

For vivo, this highlights an exciting opportunity to expand its userbase and presence in India. vivo has quietly but steadily expanded its presence in the premium and affordable premium tiers. The V and X series have helped the brand break into a category once dominated by long-standing incumbents. vivo is perfectly positioned to lead the premium segment by playing to its strengths. The brand pairs a massive physical retail network and dedicated service support with high-end innovation, specifically its ZEISS imaging partnership and the intuitive OriginOS 6. This blend of ‘high-touch’ service and ‘high-tech’ hardware makes vivo a top-tier challenger to the established leaders in the Indian premium segment in 2026 and beyond.

This article was commissioned by vivo