Facing rising costs and weak demand, India’s smartphone market posted its weakest quarter in six years, declining 3% YoY in Q1 2026 as price hikes and slowing upgrade cycles weighed on shipments.
India’s smartphone shipments declined 3 per cent year-on-year in the first quarter of 2026, marking the weakest quarterly performance in six years, according to Counterpoint Research. The downturn was attributed to rising component costs, price increases by manufacturers and subdued consumer demand.
Data showed that nearly one-third of new smartphone models were launched in the January–March period, as original equipment manufacturers (OEMs) advanced releases to offset rising bill of materials (BOM) costs.
Memory components, particularly NAND and DRAM, alongside currency fluctuations, were identified as key cost pressures. Average price increases exceeded ₹1500 across more than 80 models, with the entry-level segment below ₹15,000 most affected.
Among brands, vivo (excluding iQOO) led the market with a 21 per cent share, supported by expanded offerings and strong distribution. Samsung Electronics ranked second, driven by demand in the ₹15,000–₹20,000 segment and early traction for its Galaxy S26 series.
OPPO (excluding OnePlus) held third position with a 14 per cent share and recorded 8 per cent annual growth, making it the fastest-growing among the top five brands.
Xiaomi (including POCO) ranked fourth, with double-digit growth in the ₹10,000–₹20,000 segment, while realme saw strong online demand in the same price range. Apple Inc. accounted for 9 per cent of shipments, supported by continued demand for its iPhone 17 series.
Among emerging players, Nothing (including CMF) recorded 47 per cent year-on-year growth, making it the fastest-growing brand overall. Google led the premium segment above ₹45,000 with 39 per cent growth, driven by demand for AI-enabled features.
On the supply side, MediaTek led the chipset market with a 49 per cent share, while Qualcomm dominated the premium Android segment with over 50 per cent share.
Looking ahead, the market is expected to remain under pressure, with shipments projected to decline by 10 per cent year-on-year in 2026.
Analysts also anticipate a double-digit drop in the second quarter, as memory prices, already up fourfold over the past three quarters, are forecast to rise by a further 80–85 per cent sequentially.
