India's smartphone market grew 12% on year to 24.4 million units in the first quarter of 2016, according to Canalys. Among the top-10 vendors during the quarter, Lenovo grew the most with shipments up 63%, while Apple saw its shipments climb 56% making it the second fastest-growing vendor.

Thanks to its value-for-money handsets and offline channel strategy, fourth-ranked Lenovo saw its shipments surge 63% from a year earlier in the first quarter of 2016, Canalys indicated. Meanwhile, though in eighth place, Apple continued to climb in India with shipments rising 56% on year during the same period.

Samsung Electronics continued to lead the India smartphone market in the first quarter of 2016, followed by Micromax, Intex, Lenovo and Lava, Canalys said.

"Over the past 18 months, India's smartphone market has been rocked by dramatic changes. The rise of online channels, the arrival of new international vendors (particularly from China), the move to LTE and the desire for higher-quality devices have all had a big impact. Indian companies have struggled as incoming vendors have been quicker to address these trends," said Ishan Dutt, research analyst at Canalys. "Micromax, in particular, has been through tough times, with key executives leaving. Now the company is aiming to revamp its strategy to incorporate an ecosystem of services around payments and content."

Micromax's share of the India smartphone market fell by a couple of percentage points to 16.7% in the first quarter of 2016, Canalys disclosed.

"Apple is outperforming the overall market in India, and still has great growth potential," noted Canalys Mobility analyst Wilmer Ang. "It is seriously challenging Samsung's dominance of the premium segment."

For devices priced over US$300 (INR20,000), Samsung's market share fell to 41% in the first quarter of 2016 from 66% a year earlier, while Apple grew its market share from 11% to 29%, Canalys indicated.

"Apple's growth run could be short-lived," Ang continued. "The 5s' success in India has more to do with affordability of a premium brand than a preference for smaller phones, and the move to the more expensive SE will discourage budget buyers. Also, the recent government regulation curbing discounts on smartphones sold by online platforms will affect demand."