India’s smartphone market shrank by 10 per cent in Q2 2026, driven by cautious consumer spending and rising costs, with premium devices appealing to financing-driven buyers while affordable segments suffer.
India’s smartphone market fell 10 per cent year on year in the second quarter of 2026, as shoppers put off upgrades and brands and retailers trimmed stock, according to CyberMedia Research. The slowdown was most visible in the lower tiers, where the affordable and value-for-money categories came under heavy pressure, while the premium end continued to expand.
The research firm said the downturn reflected cautious consumer spending, higher component and device costs, longer replacement cycles and inventory correction across sales channels. Menka Kumari, senior analyst at CyberMedia Research, said the sharp rise in the super-premium band showed that financing, trade-ins and zero-cost monthly instalment plans were now central to upgrade decisions, rather than features alone. She added that price-sensitive buyers were delaying purchases, leaving the market more divided between premium and mass segments.
Other market trackers painted a similar picture. Counterpoint Research reported that shipments in India fell 10 per cent in the quarter, the steepest June-quarter decline in six years, with rising memory prices pushing average handset prices up by about 15 per cent. The sub-Rs 15,000 category was hit especially hard, while the ultra-premium segment remained comparatively resilient, helped by financing offers. Counterpoint also said Samsung was the only top-five maker to post annual shipment growth, while Nothing and Google recorded strong gains on the back of new models and higher visibility.
The broader pressure on the market was also reflected in the feature-phone segment, where 4G devices declined sharply even as 2G handsets posted modest growth. CMR expects India’s smartphone market to fall 10 per cent to 12 per cent over the full year, with lower-priced segments likely to remain subdued if costs stay elevated and consumer sentiment remains restrained.
Disclaimer: This content is intended for informational purposes only. Readers are advised to exercise their own judgement, conduct due diligence, or consult a qualified expert before acting on any information provided.
