India’s smartphone shipments plunged 20% year-on-year in Q3 2026, hitting their lowest level in a decade as record-high memory prices drove up device costs, a Counterpoint Research report said on Friday.
Weak demand prompted original equipment manufacturers (OEMs) to limit channel inventory, even ahead of the festive season. Shipments of smartphones priced below Rs 20,000 dropped 47% as rising prices pushed devices into higher price segments.
“Rising component costs pushed device prices higher, putting increasing pressure on affordability and weakening the traditional mass-market volume engine, particularly below Rs 15,000,” Research Analyst Shubham Singh said.
Counterpoint Research Director Tarun Pathak projected a 13% contraction in India’s smartphone market in 2026. Persistent pricing pressures are likely to weaken affordability and delay device replacements, he said.
The post-festive slowdown could further hurt demand, while elevated component costs may trigger another round of price hikes after seasonal sales.
Manufacturers are already adjusting their product portfolios to manage rising costs. They are introducing more 4G and lower-specification models while reducing specifications across certain price segments to maintain existing price points.
The market could remain under pressure in 2027 as higher prices extend replacement cycles and restrict volume recovery. Premium and upper-midrange smartphones may offer greater growth opportunities, while affordability concerns and tighter margins continue to challenge the mass market.
The report said no-cost equated monthly instalments (EMIs), exchange offers and retailer promotions would become increasingly important in helping consumers manage higher upfront costs and upgrade their devices.
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