India’s smartphone market witnessed its steepest quarterly decline in six years during the April–June 2026 period, with overall shipments falling 10% year-on-year (YoY) as rising component costs, higher smartphone prices and weakening consumer demand weighed heavily on the industry, according to a report by Counterpoint Research.
The report highlighted that the mass-market smartphone segment priced below ₹15,000 experienced the sharpest decline, with shipments plunging 45% YoY. The downturn was primarily driven by a sharp increase in memory prices, prompting smartphone manufacturers to raise device prices and expand their 4G portfolios to adapt to evolving market conditions.
Counterpoint noted that soaring component costs have significantly impacted affordability in India’s price-sensitive smartphone market. Memory prices have increased nearly fourfold since September 2025, and are expected to climb further, potentially reaching five times previous levels in the coming months.
According to Tarun Pathak, Research Director at Counterpoint Research, the Indian smartphone market is likely to remain under pressure for the rest of the year as elevated memory and component costs continue to push device prices higher.
He said the firm expects India’s smartphone market to decline by approximately 13% YoY for the full year, with affordability challenges likely to delay consumer upgrades and extend replacement cycles.
On the supply side, smartphone manufacturers implemented multiple rounds of price increases during the quarter in response to higher costs for memory and other key components.
Prachir Singh, Senior Analyst at Counterpoint Research, said the cumulative impact of these price revisions resulted in an average smartphone price increase of nearly 15% by the end of the second quarter, affecting demand across almost every price category.
The report also observed that consumers are holding onto their smartphones for longer periods, further reducing replacement demand and contributing to lower shipment volumes.
While the budget segment faced significant pressure, the ultra-premium smartphone category priced above ₹45,000 remained resilient, supported by increasing consumer preference for premium devices and the widespread availability of financing options such as equated monthly instalments (EMIs), buy-now-pay-later schemes and zero-interest payment plans.
Counterpoint noted that premiumisation continues to reshape the Indian smartphone market, with more consumers opting for high-end devices despite broader economic challenges.
In terms of brand performance, Vivo retained its position as India’s leading smartphone brand during Q2 2026, capturing 17.8% market share. However, the company also experienced pressure in the budget segment as repeated price increases across its Y and T series smartphones contributed to a double-digit decline in shipments.
Samsung closely followed with a 17.6% market share, recording 2% year-on-year shipment growth, making it one of the few major brands to register positive growth during the quarter.
Oppo secured the third position with a 14% market share, while Xiaomi, including its Poco brand, ranked fourth with 13% market share. Realme completed the top five smartphone brands in India.
Both Xiaomi and Realme reported year-on-year shipment declines, largely attributed to repeated price increases across their entry-level and mid-range smartphone portfolios.
Apple recorded a 3% decline in shipments during the quarter, with its market share reaching 7%. According to Counterpoint, demand for the iPhone 17 series remained robust; however, shipment growth was constrained by supply shortages and inventory limitations across both online and offline retail channels.
Among premium smartphone manufacturers, Google emerged as the fastest-growing brand in the ultra-premium segment, posting an impressive 68% year-on-year growth as demand for its flagship Pixel smartphones continued to expand.
Meanwhile, Nothing was identified as India’s fastest-growing smartphone brand overall during the quarter, registering 105% year-on-year shipment growth. The company benefited from strong consumer response to its newly launched Phone (4a) and Phone (4a) Pro models, which helped drive rapid expansion in market presence.
On the chipset front, MediaTek maintained its leadership position, accounting for 49% of smartphone chipset shipments in India during Q2 2026.
The report also highlighted the growing importance of consumer financing in driving smartphone purchases. More than 50% of mainstream smartphone sales during the quarter were completed through financing options, reflecting the increasing role of credit-based purchasing in supporting premium smartphone adoption.
Despite the current slowdown, industry analysts expect India’s smartphone market to recover gradually once component prices stabilise and pricing pressure eases. Until then, affordability concerns and extended device replacement cycles are expected to continue influencing consumer purchasing behaviour across the country’s highly competitive smartphone industry.
Disclaimer: This report has been editorially prepared using publicly available information and official research findings. Readers are advised to refer to Counterpoint Research’s official report for complete market data and methodology.
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