The K-shaped demand structure is very much reflected in the research with the value-for-money segment declining 30 per cent year-on-year, while the premium segment (>₹25000) growing at 54 percent during the same period.
Under pressure from increasing device and component costs, extended replacement cycles, and inventory optimisation across retail channels, India’s smartphone market declined by 10 per cent year-on-year, in the second quarter of financial year 2026, according to a report released by CyberMedia Research (CMR).
The K-shaped demand structure is very much reflected in the research with affordable and value-for-money segments declining by 88 per cent and 30 per cent year-on-year respectively, with the premium segment (>₹25000) growing at 54 per cent during the same period. The super premium segment (>₹50000-₹100000) surged 72 per cent on aspirational demand.
CMR data showed that Vivo led the Indian market in Q2 2026, with an 18.2 per cent share, followed by Samsung, with a 17.1 per cent share, followed by Oppo with a 13.1 per cent share.
Apple captured 8 per cent of India’s market share with iPhone 16 series accounting for 50 percent of the shipments and iPhone 17 series accounting for 35 percent.
“The Indian smartphone market in Q2 2026 reflected a widening gap in consumer demand. The super premium segment’s 72 per cent year-on-year growth points to financing structures, zero-cost EMI, trade-in offers, and consumer credit, becoming the deciding factor in premium upgrades,” said Menka Kumari, senior analyst, CMR.
The affordable and value-for-money segments remained under pressure due to price-sensitive customers. Rising component and device cost are going to keep sub-₹15000 under pressure for H2 2026, according to the research. The premium and the super premium segments, on the contrary, are expected to grow by 50 per cent in H2 2026.
While the 2G phone segment, led by Itel, Lava and HMD grew by 5 per cent YoY, the 4G segment declined 43 per cent YoY. With this CMR has predicted a 10 to 12 per cent decline in India’s smartphone market in calendar year 2026.
