India’s Smartphone Market Faces Sharp Decline as Rising Prices Hit Demand

India’s smartphone market is facing significant challenges as rising device prices discourage consumers from upgrading their phones. According to a report by Counterpoint Research, smartphone shipments in India declined by 20% in the third quarter of 2026, marking the lowest level in a decade. Research Director Tarun Pathak said the market could contract by around 13% for the full year. Higher component costs and growing pressure on consumer purchasing power have contributed to the slowdown.

Samsung regained its leadership position with a 17% market share, supported by strong sales of its Galaxy A series and its online and offline sales strategies. Vivo’s share fell from 20% to 16%, while Oppo’s declined from 13% to 12%. Xiaomi maintained an 8% share, whereas Apple’s share dropped from 9% to 8%. Among domestic brands, AI+ recorded the fastest growth, with a 306% year-on-year increase in the third quarter. Counterpoint Research analyst Shubham Singh noted that rising component costs had pushed smartphone prices higher, particularly in the budget segment. Sales of phones priced below ₹15,000 weakened considerably, prompting many consumers to postpone upgrades. Smartphone prices in the sub-₹20,000 segment reportedly increased sharply, with the category experiencing a 47% decline, according to the report.