New Delhi: India's smartphone market shipments fell 26% year-on-year to 35.8 million units in the quarter ended September 2026, the industry's lowest in a decade despite the start to the festive season, as steep prices and cautious consumer spending weighed on replacement demand, research firm Omdia said on Monday.
Higher prices, triggered by a shortage of memory and other components, has led to the smartphone market shifting from online-led shipment expansion during the festive period, to more selective, channel-driven growth, said Sanyam Chaurasia, principal analyst at Omdia.
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"September, historically a critical inventory build-up period for major online sales events, saw weaker shipment momentum. Fewer exclusive launches, limited affordable SKUs (stock-keeping units) and narrowing promotional differences reduced the online channel's traditional festive advantage," Chaurasia said.
The decline in online sales disproportionately hit Chinese smartphone brands, whose combined market share fell to 68% in Q3 2026 from 75% in Q32025, Omdia said. In contrast, Samsung and Apple strengthened their positions through premium offering, strong consumer demand, established retail partnerships, and structured upgrade programs.
Samsung regained the top spot for the first time since Q1 2024, shipping 6.7 million units in the September quarter, driven by a strong premium portfolio of handsets, along with exchange benefits and longer-tenure financing.
Apple too broke into the top five ranking, pushing out Realme, shipping 3.9 million units driven by channel stocking ahead of anticipated price hikes and sustained demand for the base iPhone 17 and 16 models. The late-quarter launch of the iPhone 18 Pro and Pro Max helped the brand gain further momentum, supported by bank cashback, exchange bonuses, and flexible no-cost financing schemes.
ET BureauMuted signal this quarter
Meanwhile, Vivo slipped to second place, marking the sharpest decline among the top five brands in Q3 2026, after falling 34% year-on-year as a result of repeated price hikes and constrained entry-level models weakening its competitiveness.
Oppo and Xiaomi also saw significant shipment declines in the quarter due to rising prices and cautious retailer stocking and weakened RAM and storage configurations respectively, the research firm said.
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Chaurasia said the market is expected to decline further in 2027 after a tough 2026, which will test the brands' ability to revive replacement demand with higher prices and longer device lifecycles becoming structural challenges.
"Pricing pressures are likely to persist through at least H127, making compelling device experiences increasingly important in driving upgrades.