India’s smartphone market has recorded its weakest first-quarter performance in six years, with shipments declining 3% year-on-year (YoY) in January–March 2026, as rising handset prices, supply-side cost pressures, subdued consumer demand has weighed on volumes, according to Counterpoint Research.
The report, released by the global market research firm added that nearly one-third of model launches were advanced to Q1 to offset rising component costs, as OEMs tried to mitigate further BOM (Bill of Materials) inflation. This is mainly due to memory prices and currency fluctuations.
The weakness is expected to persist into the second quarter, which could see shipments fall in double digits. For the full year, the market is likely to contract by around 10% YoY, as continued inflation in component costs—especially memory, which has surged nearly fourfold over the past three quarters—keeps devices expensive and pushes consumers to delay upgrades.
Mass Market
The slowdown in Q1 was led by weakness in the sub- Rs. 15,000 segment, where affordability concerns have intensified.
“With average hikes exceeding INR 1,500, the sub-INR 15,000 segment has been hit the hardest, given its high price sensitivity,” said Prachir Singh, Senior Analyst.
He added that rising energy costs amid ongoing geopolitical tensions in the Middle East has further strained household budgets, which has pushed consumers to prioritize essentials over discretionary purchases like smartphones. Thereby, upgrade cycles have begun to stretch, and a meaningful recovery in the mass segment is likely to remain gradual.
The drop comes despite brands accelerating launches and pushing inventory into channels, which highlights persistent stress on the demand side, particularly in the price-sensitive segments that have so far driven growth in the market.
This trend has been further exacerbated by broader macroeconomic pressures, including inflation and elevated living costs, which have reduced consumers’ ability to upgrade devices frequently.
Brand Performance
Tracking the leader board, Vivo (excluding iQOO) has led in Q1 with a 21% share, supported by an expanded product lineup and strong distribution. Samsung has followed the lead, given steady demand for its mass-market A-series models and a positive early response to its flagship Galaxy S26 lineup. Meanwhile, OPPO (excluding OnePlus) has retained the third position with a 14% share, registering 8% YoY growth. Xiaomi (including POCO) has been ranked next.
Premium smart phone brand Apple has seen its shipment share reaching 9% in Q1 2026, driven by sustained strong momentum of its iPhone 17 series, alongside offers such as long-term EMI schemes and exchange offers.
Additionally, Google has come forth as the fastest-growing brand in the premium segment (>Rs 45,000), growing by 39% YoY during the quarter, driven by its focus on AI-led features. OnePlus has been recognised as the leading brand in the affordable premium segment on Amazon. MediaTek led India’s smartphone chipset market with a 49% shipment share, while Qualcomm has led the premium segment (>Rs. 30,000).
Analysts have said than 80 smartphone models saw average price increases of around 15% in Q1, with prices expected to climb another 15–20% in Q2, as persistent cost pressures, particularly in memory, where prices are projected to jump 80–85% sequentially continue to drive up device costs.
“In this environment, brands are expected to stay disciplined, focusing on premium-led growth, tighter portfolio execution and channel efficiency. While the premium segment should remain relatively resilient, ongoing weakness in the mass segment is likely to keep the recovery gradual and uneven”, said Tarun Pathak, Research Director.