A slowdown in consumer spending and rising device costs have pushed India’s smartphone market into its weakest start in 6 years, with shipments declining 3% year-on-year in Q1 2026, according to a research firm.
At the core of this decline is an affordability challenge. Smartphone prices have increased by over Rs 1,500 on average, mainly due to rising costs of NAND and DRAM memory and currency pressures. The impact is most visible in the sub-Rs 15,000 segment, which drives large volumes in India. As entry-level buyers delay upgrades, overall demand has weakened.
Rising household expenses, influenced by energy costs and global geopolitical tensions, have further tightened consumer budgets. “Rising energy costs amid ongoing geopolitical tensions in the Middle East are further straining household budgets, pushing consumers to prioritize essentials over discretionary purchases like smartphones,” said Prachir Singh, senior analyst at the research firm.
Brands have attempted to respond by accelerating product launches, with nearly 1/3 of new models introduced in Q1 to stay ahead of rising input costs. However, this strategy has not fully addressed weak retail demand.
Among manufacturers, Vivo led with a 21% market share, supported by strong offline presence and portfolio expansion. Samsung followed, driven by its A-series and early traction of the Galaxy S26 lineup. Oppo secured the 3rd spot, while Xiaomi and realme focused on the Rs 10,000–Rs 20,000 segment to sustain momentum. Apple increased its share to 9%, highlighting stronger resilience in the premium segment.
The divide between premium and mass segments is becoming more visible. Devices priced above Rs 45,000 continue to perform well, with Google seeing growth driven by AI features. Meanwhile, the broader market remains under pressure. Newer brands like Nothing are growing but mainly within niche segments.
Looking ahead, the outlook remains cautious. Analysts expect Q2 shipments to decline in double digits, with full-year volumes projected to fall around 10%. Memory costs have risen nearly 4X in recent quarters, with further increases of 15–20% expected.
In response, brands may prioritise premium products, streamline portfolios, and focus on margins over volume, signalling a slower and more uneven growth phase for the market.
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