India’s smartphone shipments experienced a sharp 10 per cent drop in Q2 2026 amid rising prices and cautious consumer spending, with premium devices outpacing lower-priced segments thanks to innovative financing and demand for advanced features.
India’s smartphone market weakened sharply in the June quarter of 2026, as higher prices and cautious spending pushed many buyers to postpone upgrades. CyberMedia Research said shipments fell 10 per cent year on year in the second quarter, describing the period as one shaped by extended replacement cycles and inventory correction across the retail chain.
The downturn was most severe in the lower-priced bands. CyberMedia Research said the affordable category fell 88 per cent year on year, while the value-for-money segment dropped 30 per cent. That pattern suggests that price-sensitive households were hit hardest as handset costs climbed and demand for discretionary purchases softened.
At the other end of the market, premium devices continued to gain ground. CyberMedia Research reported 54 per cent growth in the segment above Rs 25,000, with the super-premium band between Rs 50,000 and Rs 1 lakh rising 72 per cent. The firm said financing tools such as zero-cost EMIs, trade-in offers and consumer credit were increasingly shaping upgrade decisions, alongside demand for better cameras, AI features and refined design.
Other reports pointed to similar pressure from component inflation, particularly higher memory costs, which have fed through into handset pricing across most categories. The Indian Express said the June quarter was the weakest in six years, while Mint linked the fall to record-high memory prices, inflation and subdued discretionary demand. Counterpoint Research, as reported by Gadgets 360, also said the broader market decline was tied to multiple rounds of price rises across segments.
The market’s split between strained mass-market demand and resilient premium buying is likely to continue into the second half of the year. CyberMedia Research expects a full-year fall of 10 per cent to 12 per cent in 2026, with the sub-Rs 15,000 market remaining under pressure. It said premium and super-premium phones could still grow by more than 50 per cent in the second half, supported by aspirational demand, premium hardware and emerging form factors such as foldables. Separate reporting by PhoneArena and FoneArena indicated that brands including Samsung, Nothing and Google were among the relative winners in a polarised market.
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