India Becomes World’s No. 2 Smartphone Giant! With This Whooping Numbers Of Users

India has officially become the second-largest active installed base of smartphones globally, standing just behind China. According to a 2025 report by Counterpoint Research, India now has over 740 million active smartphones in use. This means more than half of the country’s 1.45 billion population owns and actively uses a smartphone. The data highlights India’s growing strength in the global smartphone market and reflects not just sales, but long-term device usage and customer loyalty in the mobile ecosystem.

What Is Active Installed Base and Why It Matters?

The term active installed base refers to the total number of smartphones currently in use, not just annual shipments. Unlike shipment data, which measures how many devices are sold in a year, the installed base captures,

• Device longevity
• User retention
• Brand and ecosystem loyalty
• Longer replacement cycles

This metric gives a deeper understanding of a country’s smartphone penetration and digital maturity. In India’s case, the large installed base shows strong adoption across urban and rural areas. It also signals stability in the smartphone ecosystem, where users hold on to their devices longer rather than frequently upgrading.

India vs China: The Global Smartphone Race

While India ranks second, China remains the world leader in terms of active installed base. However, India’s rapid digital growth, affordable smartphones, and expanding internet access have helped it narrow the gap significantly.

China benefits from a mature electronics ecosystem and strong domestic brands. India, on the other hand, has seen exponential growth due to,

• Affordable 4G and 5G devices
• Expansion of digital payments and UPI
• Government initiatives like Digital India
• Growth in local manufacturing under PLI schemes

India’s smartphone market is expected to continue expanding as rural connectivity improves and 5G penetration increases.

Smartphone Retention Period in India: Key Data

One of the most important insights from the report is the average smartphone retention period. In India, users keep their smartphones for around 42 months, which is slightly lower than the global average of 47 months.

This means Indian consumers are upgrading their phones roughly every 3.5 years. The shorter cycle compared to the global average indicates,

• Growing purchasing power
• Increasing demand for better features
• Rising popularity of mid-range and premium devices
• Longer retention cycles in mature markets contribute to a stable installed base, and India is steadily moving in that direction.

Growth Drivers Behind India’s Smartphone Boom

Several structural factors have contributed to India’s rise as the second-largest smartphone installed base,

• Digital Expansion: India’s push toward digital services, including online banking, e-commerce, telemedicine, and education, has increased smartphone dependence.
• Affordable Data Revolution: Low-cost internet services have made smartphones essential for daily life, especially in rural areas.
• Domestic Manufacturing Push: Government incentives under Production Linked Incentive (PLI) schemes have boosted smartphone assembly and exports.
• Expanding 5G Rollout: The ongoing 5G expansion is encouraging users to upgrade to newer, compatible devices.

These factors together explain why India’s active installed base has crossed the 740 million mark.

Background of India’s Smartphone Market Journey

• India’s smartphone journey began accelerating after 2016 with cheaper data plans and rising competition among brands.
• Over the years, the country moved from being a feature phone-dominated market to a smartphone-first economy.
• Today, India is one of the largest consumers and manufacturers of mobile devices globally.
• The shift from shipment-based analysis to installed base metrics shows that India’s market is maturing.
• With increasing digital adoption and ecosystem integration, smartphones have become central to India’s economic and social transformation.

Question

Q. According to Counterpoint Research (2025), India ranks ______ in terms of active smartphone installed base globally.

A) First
B) Second
C) Third
D) Fourth