India’s smartphone market could face a challenging festive season in 2026 as rising handset prices prompt many consumers to postpone purchases despite strong buying interest.
A recent study by Trakin Tech and Techarc, based on responses from 5,958 potential buyers, found that 54% of intended smartphone purchases may not convert into sales if prices continue to increase beyond consumer expectations. However, the report suggests this is more of a delay in demand rather than a complete drop in interest.
According to the findings, 48% of consumers plan to wait for prices to stabilise before buying, while 6% are considering refurbished or second-hand devices. This creates uncertainty for smartphone brands that traditionally depend on the July-to-December festive season to drive sales.
The report comes after market intelligence firms reported a 3% year-on-year decline in India’s smartphone shipments during Q1 CY2026, marking the weakest first quarter in 6 years. A full-year decline of nearly 10% is also being projected.
Price increases have been driven largely by rising NAND flash and DRAM memory costs. Smartphone prices have already increased by 8% to 12% between January and May 2026. Several brands have revised prices after launch. The OnePlus Nord 6 base variant rose from ₹38,999 to ₹42,999, while the Nothing Phone 3a Lite increased from ₹20,999 to ₹27,999. Vivo and Samsung have also adjusted pricing across multiple models.
The ₹15,000–₹30,000 segment is expected to face the biggest impact, with 22% of buyers in this category considering cheaper alternatives. Premium buyers remain more resilient. In the above ₹1,00,000 category, only 30.9% plan to delay purchases, while 44.4% are willing to buy regardless of price increases.
The study also found younger consumers are driving demand. Buyers aged 18–24 recorded the lowest deferral rate at 43.1%, compared to 54.8% among those aged 35–44. Financing is becoming a key purchase enabler, with EMI users being 3.5 times more likely to choose financing again.
The report concludes that festive discounts alone may not be enough this year, as continued component shortages and currency pressures are expected to keep smartphone prices elevated into 2027.
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