India’s smartphone market fell 20 per cent year-on-year to its lowest level in a decade in the July-September quarter of 2026, hit by record-high memory chip prices that pushed up device costs and weakened consumer demand, according to a Counterpoint Research report released on Friday.
The market is expected to contract by around 13 per cent in 2026, with persistent pricing pressure weighing on affordability and replacement demand, said Tarun Pathak, research director at Counterpoint Research.
“India’s smartphone shipments fell 20 per cent YoY in Q3 2026 (July–September) to their lowest level in a decade. Record-high memory prices drove up device costs, pulling down shipments for most brands. Amid persistently soft demand, OEMs held back on channel inventory, even ahead of the festive season,” the market research firm said.
The market downturn reshuffled brand rankings, with Samsung reclaiming the top position after nine quarters, while several Chinese smartphone makers recorded a decline in market share.
“With a 17 per cent share in Q3 2026, Samsung reclaimed the top spot in the market after nine quarters. The Galaxy A series drove volumes, supported by the brand’s balanced online and offline strategy. Samsung's relatively measured price hikes and proactive management of rising memory costs helped it outperform the overall market,” the report said.
Indian smartphone brands, led by Ai+ Smartphone, also regained ground during the quarter. Their combined market share rose to 15 per cent in Q3 2026 from 3 per cent in the corresponding quarter last year.
“Ai+ Smartphone was the fastest-growing brand in Q3 2026, recording 306 per cent YoY shipment growth, supported by an expanded product portfolio and increasing market presence,” the report said.
Among other major brands, Vivo’s market share fell to 16 per cent from 20 per cent a year earlier, while Oppo’s share declined to 12 per cent from 13 per cent. Xiaomi retained an 8 per cent share.
Apple’s market share also declined to 8 per cent from 9 per cent year-on-year, despite strong initial demand for its latest premium devices.
“Apple has seen a strong start to the iPhone 18 Pro series in India, with initial sales nearly 20 per cent higher YoY than those of the iPhone 17 Pro series. Continued demand for the iPhone 17 lineup points to healthy consumer interest, even as Apple adjusts pricing across its portfolio amid rising memory and component costs,” the report said.
Shubham Singh, research analyst at Counterpoint Research, said the quarter marked a shift in India’s smartphone market, with higher component costs compounding weak consumer demand.
"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. Consumers became more selective, extended their replacement cycles and deferred upgrades, while OEMs prioritised margin protection, portfolio rationalisation and leaner channel inventory over aggressive volume expansion ahead of Diwali," he said.
Singh added that shipments in the sub-Rs 20,000 segment fell sharply during the quarter as higher prices pushed devices into more expensive categories.
He said that sub-Rs 20,000 shipments declined by 47 per cent in Q3 2026 as rising model prices pushed devices into higher price bands.