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India's Smartphone Shipments Drop to Decade Low as Budget Segment Collapses

Record-high memory and component costs have pushed up phone prices and prompted makers to cut inventory and focus on higher-margin premium models.

Overview

  • Counterpoint Research's Q3 2026 report, published Friday, found smartphone shipments in India fell about 20% year-on-year to their lowest level in a decade.
  • Shipments of phones priced below Rs 20,000 plunged roughly 47% year-on-year as rising component costs pushed some models into higher price bands and hit affordability.
  • Record-high DRAM and NAND prices tied to global AI data-center demand raised bill-of-materials costs and reduced supply, which raised retail prices across brands.
  • OEMs responded by trimming channel inventory, introducing lower-spec and 4G variants to control costs, and shifting sales effort to premium and upper-mid models; Samsung reclaimed the top spot with a 17% share and Apple saw stronger early sales for the iPhone 18 Pro.
  • Analysts project about a 13% market contraction for full-year 2026 and warn that post-festive price pressure could extend replacement cycles, increase reliance on EMI and exchange offers, and delay volume recovery until memory costs ease.