Indian Smartphone Shipments Plummet 20% Amid Rising Memory Chip Costs
Smartphone shipments in India fell 20% in Q3 2026 due to soaring memory chip prices, marking the lowest level in a decade.
New Delhi, October 23 (Daily Kiran) : India’s smartphone market has faced a significant downturn in the third quarter of 2026. A report released by Counterpoint Research on October 23 reveals that smartphone shipments dropped by 20% year-on-year, reaching their lowest point in a decade. This decline is attributed to record-high memory chip prices, which have substantially increased manufacturing costs.
The report indicates that demand in the market remains persistently weak. Consequently, smartphone manufacturers have refrained from sending extra stock to distribution channels ahead of the festive season. The rising costs have particularly impacted the entry-level and mid-range segments.
According to the Counterpoint report, shipments of smartphones priced under ₹20,000 experienced a staggering 47% decline. Many models have seen price hikes, pushing them into higher price brackets and affecting the purchasing power of average consumers.
Shubham Singh, a research analyst at Counterpoint, noted that the rising costs of components have driven up smartphone prices. This has had a direct impact on the mass-market segment, particularly for devices priced below ₹15,000, which has long been the backbone of growth in the Indian smartphone market.
Tarun Pathak, the research director at Counterpoint, predicts an overall decline of approximately 13% in the Indian smartphone market throughout 2026. The increasing prices are dampening demand for new phones and disrupting the replacement cycle for older devices.
Pathak also mentioned that the post-festive season slowdown may exert additional pressure on the market. With component costs remaining high, companies might raise prices again after the sales season.
The report highlights that the effects are already visible in the mass-market segment. To manage costs, many companies are introducing more 4G smartphones and models with fewer features. Some are also adopting strategies to maintain prices while reducing specifications in certain price categories.
Experts suggest that challenges may persist in 2027. The rising smartphone prices are extending consumers’ replacement cycles, limiting the potential for a rapid recovery in sales. Future growth is likely to be concentrated in the premium and upper mid-range segments, while the low-cost market faces sustainability challenges and pressure on margins.
The report concludes that initiatives like no-cost EMIs, exchange offers, and retailer-based promotional schemes will become increasingly vital. These measures could make upgrading to more expensive smartphones easier for consumers in the near future.
