India Q2 2026 Smartphone Shipments Decline 10%
India's smartphone shipments fell 10% year-on-year in Q2 2026, marking the largest June quarter decline in six years, according to Counterpoint Research. Rising component costs drove up prices and dampened consumer demand.
India's smartphone market experienced a 10% year-on-year decline in shipments during the second quarter of 2026, Counterpoint Research reported. This represents the steepest drop for the June quarter in six years.
The downturn was primarily driven by record-high prices for memory chips and other components. These increased costs led manufacturers to raise prices across nearly all smartphone segments, resulting in an approximate 15% increase in the average selling price by the end of Q2. For devices priced below 15,000 Indian rupees, memory component costs surged to represent 45% of the total bill of materials, up from 20% previously.
The combination of higher prices, macroeconomic headwinds, and inflation pressure weakened consumer demand and extended replacement cycles. Shipments in the mass market segment, below 15,000 rupees, saw a significant 45% decrease. In contrast, the ultra-premium segment, priced above 45,000 rupees, showed resilience, partly supported by financing options.
Counterpoint Research predicts that the overall Indian smartphone market will remain under pressure for the remainder of 2026, forecasting a full-year shipment decline of 13%. Memory prices have climbed nearly fourfold since September 2025 and are expected to continue their upward trajectory.