New Delhi, May 10 -- After enduring two consecutive years of a decline, India's smartphone market, the world's second-largest, is showing signs of a recovery. Not because companies are selling more handsets. But because they have figured out how to sell costlier ones.

The first quarter of the year has ushered in a wave of optimism, signalling a resurgence for brands, such as Samsung, Xiaomi and Vivo, with the industry witnessing an impressive 18% rise in market value, soaring to $9.5 billion-the highest first-quarter revenue in the past five years.

Despite the first quarter of a fiscal year being a relatively subdued period for sales historically, a consensus poll of four industry analysts by Mint, project a robust growth trajectory for...