India Smartphone Shipments Decline 10% in Q2 2026 Amid Record Memory Prices

India’s smartphone market recorded its steepest June quarter decline in six years, with shipments falling 10 per cent year-on-year in the second quarter of 2026, according to Counterpoint Research. The market slowdown was driven by weak consumer demand and growing economic pressures, even as brands rolled out discounts and financing offers.

The sharp decline was largely due to record-high memory prices, which forced manufacturers to increase smartphone prices across nearly every segment. The research firm estimates that average smartphone prices rose by around 15 per cent by the end of the quarter as brands passed on higher component costs to consumers.

Senior Analyst Prachir Singh said both demand and supply challenges affected the market. Along with rising DRAM (Dynamic Random Access Memory) and NAND memory prices, inflation, weak discretionary spending, and longer replacement cycles reduced consumer demand, particularly in the budget segment.

The sub-Rs 15,000 category was hit the hardest, with shipments declining 45 per cent year-on-year. Counterpoint noted that Chinese smartphone brands, which have significant exposure to entry-level and mid-range devices, saw their combined market share fall to its lowest level for a second calendar quarter since 2020. Several brands have responded by expanding their 4G portfolios to cater to price-conscious buyers while waiting for component costs to stabilise.

At the other end of the market, the ultra-premium segment (above Rs 45,000) remained relatively resilient, supported by financing schemes that lowered upfront purchase costs.

Among smartphone brands, vivo (excluding iQOO) retained the top position with an 18 per cent market share, driven by strong demand for its V70 series, although its budget lineup declined after multiple price hikes. Samsung ranked second and was the only top-five smartphone maker to register growth, posting a 2 per cent year-on-year increase. The report attributed the performance to healthy demand for the Galaxy A series, flagship S-series devices, and aggressive promotional offers during seasonal sales.

OPPO held third place with a 14 per cent share, followed by Xiaomi (including POCO) at 13 per cent, while realme completed the top five. Both Xiaomi and realme reported shipment declines as repeated price increases weakened demand in the sub-Rs 20,000 category. Apple’s shipments fell 3 per cent year-on-year, despite continued demand for the iPhone 17 series, as supply constraints and inventory shortages limited sales.

Outside the top five, Nothing emerged as India’s fastest-growing smartphone brand, recording 105 per cent year-on-year growth thanks to strong demand for the Phone (4a) lineup and increased visibility through its sponsorship of the Royal Challengers Bengaluru during the IPL. Meanwhile, Google Pixel registered the highest growth in the ultra-premium segment, rising 68 per cent year-on-year.

Looking ahead, Counterpoint expects India’s smartphone market to decline 13 per cent for the full year, warning that continued increases in memory prices will keep affordability under pressure through the remainder of 2026.