India smartphone market records sharpest June-quarter decline in six years

Rising component costs, inflation and repeated price revisions have slowed smartphone upgrades, pushing Chinese brands to their lowest combined market share since 2020, while premium devices continue to show resilience, according to Counterpoint Research.

India's smartphone market witnessed its steepest June-quarter contraction in six years, with overall shipments falling 10 percent year-on-year as rising handset prices and cautious consumer spending weakened demand, particularly in the entry-level segment. According to Counterpoint Research's Monthly India Smartphone Tracker, the slowdown also pushed the combined market share of Chinese smartphone brands to its lowest level since 2020.

The research firm attributed the market decline to a combination of surging memory component costs, persistent inflation and subdued discretionary spending. These factors prompted most smartphone makers to increase prices multiple times during the quarter, leading many consumers to postpone device upgrades despite aggressive promotional campaigns and financing offers.

Chinese smartphone brands, including Oppo, Vivo, Xiaomi, Realme, OnePlus, iQoo and Poco, were among the worst affected as they rely heavily on sales in the affordable smartphone category. To sustain volumes, several manufacturers expanded their 4G portfolios to address demand from price-sensitive buyers, although 5G smartphones continue to remain the industry's long-term growth focus.

Rising costs continue to pressure market

Counterpoint expects the difficult market environment to continue through the remainder of 2026. The research firm projects annual smartphone shipments to decline by 13 percent as DRAM and NAND memory prices, which have risen nearly four-fold since September 2025, remain elevated and are expected to increase further.

"The market remained under pressure as both demand and supply were adversely affected," said Prachir Singh, Senior Analyst at Counterpoint Research. "Almost every major smartphone brand implemented multiple rounds of price hikes, resulting in an average smartphone price increase of around 15 percent by the end of the quarter. The sub-Rs 15,000 segment was the worst affected, with shipments declining 45 percent year-on-year," Singh said.

Research director Tarun Pathak said that India’s smartphone market is expected to remain under pressure through the rest of the year. "Smartphone memory prices have increased nearly 4x since September 2025 and are expected to rise further, potentially reaching 5x in the coming months. As a result, we expect the market to decline by 13% YoY for the full year,"

Premium segment shows greater resilience

Despite the broader slowdown, premium smartphones continued to perform relatively well, supported by attractive financing options that lowered upfront purchase costs for consumers.

Among leading brands, Vivo retained its position as the market leader with an 18 percent share, although shipments declined compared with a year earlier due to weaker demand for its budget-focused Y and T series. Samsung emerged as the only brand among the top five to register year-on-year shipment growth, recording a 2 percent increase driven by sustained demand for its Galaxy A series and flagship Galaxy S smartphones.

Oppo secured the third position with a 14 percent market share, while Xiaomi, including POCO, and Realme completed the top five after both witnessed shipment declines following repeated price increases in their mass-market portfolios.

Apple's shipments slipped 3 percent year-on-year, primarily because of supply constraints despite healthy demand for the iPhone 17 series. Among emerging brands, Nothing recorded the fastest growth with shipments surging 105 percent year-on-year, aided by strong demand for its Phone (4a) lineup and higher brand visibility through its Royal Challengers Bengaluru IPL sponsorship. In the premium segment priced above Rs 45,000, Google Pixel posted the highest growth at 68 percent year-on-year.

Counterpoint also noted that consumer financing continued to influence purchasing behaviour, with more than half of smartphone purchases through mainline retail outlets completed using NBFC financing or EMI schemes during the quarter.