India’s smartphone shipments fell 20% year-on-year (YoY) in the third quarter of 2026, taking the market to its lowest level in a decade, according to Counterpoint Research’s Monthly India Smartphone Tracker.
Higher memory prices pushed up smartphone costs during the quarter. That, in turn, hit demand, particularly in the lower price segments. Shipments of smartphones priced below ₹20,000 fell 47% in Q3. “Q3 marked a realignment for India’s smartphone market, as a memory-led cost squeeze compounded softer consumer demand,” said Research Analyst Shubham Singh.
“Rising component costs pushed device prices higher, putting increasing pressure on affordability and weakening the traditional mass-market volume engine, particularly below ₹15,000,” Singh said.
Consumers also held on to their existing phones for longer. “Consumers became more selective, extended their replacement cycles and deferred upgrades,” Singh said.
At the same time, smartphone makers were cautious about putting more stock into the market ahead of the festive season. “OEMs prioritized margin protection, portfolio rationalization and leaner channel inventory over aggressive volume expansion ahead of Diwali,” he added.
Samsung takes back top spot
Samsung reclaimed the top spot in India after nine quarters, with a 17% share in Q3. It was the only brand among the top five to report YoY shipment growth.
The Galaxy A series remained a key volume driver. vivo, excluding iQOO, followed Samsung with a 16% share, while OPPO and Xiaomi, including POCO, each held 12%.
The premium segment continued to see better demand. Apple’s iPhone 18 Pro series recorded initial sales nearly 20% higher than the iPhone 17 Pro series in India. Demand for the iPhone 17 lineup also remained strong.
Ai+ Smartphone was the fastest-growing brand in Q3, with shipments rising 306% YoY. Counterpoint attributed the growth to its expanded product portfolio, stronger marketing and greater consumer visibility.
The overall market is unlikely to recover quickly. Counterpoint expects India’s smartphone market to shrink by around 13% in 2026. “The post-festive seasonal slowdown will add to the pressure, while elevated component costs are likely to drive another round of price hikes after the festive season sale,” Research Director Tarun Pathak said.
Pathak said OEMs are already adjusting their portfolios to deal with higher costs. This includes introducing more 4G and lower-specification models and trading down specifications in some price segments while trying to keep prices in check.
“Entering 2027, the market is likely to remain on a challenging footing, as higher device prices continue to extend replacement cycles and limit volume recovery,” Pathak said.