Memory Price Hikes Make Smartphones More Expensive, India Shipments Decline
India's smartphone shipments fell by 3% in Q1 2026 as rising memory component costs pushed device prices up by 15%. Counterpoint Research predicts the market could shrink by 10% for the full year as consumers delay upgrades.
📋 Article Processing Timeline
- 📰 Published: April 18, 2026 at 15:16
- 🔍 Collected: April 18, 2026 at 15:31 (15 min after Published)
- 🤖 AI Analyzed: April 18, 2026 at 21:22 (5h 50m after Collected)
Central News
(Central News Agency, reporter Lee Chin-wei, New Delhi, 18th) Smartphone shipments in India fell by 3% in the first quarter of 2026, marking the worst quarterly performance in nearly six years. Analysts attribute this to rising costs for components like memory, which have driven up smartphone retail prices, leading to a decline in consumer purchasing willingness and a slowdown in vendor shipments. Experts forecast that the Indian smartphone market could shrink by 10% overall in 2026.
A new report by research firm Counterpoint Research points out that the average selling price (ASP) of over 80% of smartphones has increased by 15%. Given the continuing rise in costs for memory and other components, it predicts smartphone prices will be hiked by another 15% to 20% in the second quarter of this year.
Senior Analyst Prachir Singh told The Economic Times of India that the market faces obvious pressure, including steep memory cost increases and exchange rate pressures (Rupee against the USD), forcing manufacturers to raise prices on high-end models.
To cope with rising costs and currency fluctuations, about one-third of new smartphone launches have been delayed until this quarter, but this has clearly failed to boost overall shipment volumes.
According to The Economic Times, Counterpoint Research Director Tarun Pathak predicts the Indian smartphone market will remain under pressure in the short term, possibly seeing a double-digit decline in the second quarter of 2026.
He further predicts a 10% shrinkage for the full year of 2026, noting that memory prices have risen repeatedly over the past three quarters. Many consumers find it hard to afford a new smartphone and are extending their replacement cycles.
India is a price-sensitive market. This quarter, vivo took the top spot with a market share exceeding 20%, followed closely by Samsung and OPPO. Additionally, boosted by the continued strong sales of the iPhone 17, Apple's market share in India reached 9%.
Empowered by artificial intelligence (AI), Google became the fastest-growing brand in the premium smartphone segment (priced over 45,000 Rupees), with annual shipments jumping 39% year-on-year.
Despite the overall decline, a closer look at the Q1 2026 data reveals that brands with a clear positioning on cost-performance ratio (CP value) still managed to stand out amidst the broader market contraction.
Swapan Shaw, a manager in charge of mobile phone sales at a household appliance chain branch in New Delhi, told CNA that smartphone sales so far in 2026 are indeed not as good as late 2025. However, he believes the strong finish at the end of last year was driven by the high hype around the iPhone 17 series, which stimulated consumer desire.
Shaw noted that many people needing an upgrade bought their phones at the end of last year, significantly cooling down the purchasing enthusiasm so far this year.
C.K. Ravindra, shopping for a phone at a New Delhi mall, said his phone is lagging, but due to the Middle East war, LPG and daily necessities have gone up in price, increasing household expenses and economic pressure, so he leans toward buying a cheaper smartphone. "I actually want to buy an iPhone and hope the 17 will drop in price soon."
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(Central News Agency, reporter Lee Chin-wei, New Delhi, 18th) Smartphone shipments in India fell by 3% in the first quarter of 2026, marking the worst quarterly performance in nearly six years. Analysts attribute this to rising costs for components like memory, which have driven up smartphone retail prices, leading to a decline in consumer purchasing willingness and a slowdown in vendor shipments. Experts forecast that the Indian smartphone market could shrink by 10% overall in 2026.
A new report by research firm Counterpoint Research points out that the average selling price (ASP) of over 80% of smartphones has increased by 15%. Given the continuing rise in costs for memory and other components, it predicts smartphone prices will be hiked by another 15% to 20% in the second quarter of this year.
Senior Analyst Prachir Singh told The Economic Times of India that the market faces obvious pressure, including steep memory cost increases and exchange rate pressures (Rupee against the USD), forcing manufacturers to raise prices on high-end models.
To cope with rising costs and currency fluctuations, about one-third of new smartphone launches have been delayed until this quarter, but this has clearly failed to boost overall shipment volumes.
According to The Economic Times, Counterpoint Research Director Tarun Pathak predicts the Indian smartphone market will remain under pressure in the short term, possibly seeing a double-digit decline in the second quarter of 2026.
He further predicts a 10% shrinkage for the full year of 2026, noting that memory prices have risen repeatedly over the past three quarters. Many consumers find it hard to afford a new smartphone and are extending their replacement cycles.
India is a price-sensitive market. This quarter, vivo took the top spot with a market share exceeding 20%, followed closely by Samsung and OPPO. Additionally, boosted by the continued strong sales of the iPhone 17, Apple's market share in India reached 9%.
Empowered by artificial intelligence (AI), Google became the fastest-growing brand in the premium smartphone segment (priced over 45,000 Rupees), with annual shipments jumping 39% year-on-year.
Despite the overall decline, a closer look at the Q1 2026 data reveals that brands with a clear positioning on cost-performance ratio (CP value) still managed to stand out amidst the broader market contraction.
Swapan Shaw, a manager in charge of mobile phone sales at a household appliance chain branch in New Delhi, told CNA that smartphone sales so far in 2026 are indeed not as good as late 2025. However, he believes the strong finish at the end of last year was driven by the high hype around the iPhone 17 series, which stimulated consumer desire.
Shaw noted that many people needing an upgrade bought their phones at the end of last year, significantly cooling down the purchasing enthusiasm so far this year.
C.K. Ravindra, shopping for a phone at a New Delhi mall, said his phone is lagging, but due to the Middle East war, LPG and daily necessities have gone up in price, increasing household expenses and economic pressure, so he leans toward buying a cheaper smartphone. "I actually want to buy an iPhone and hope the 17 will drop in price soon."
Stand with facts; every sponsorship from you is a power to protect press freedom.
Download the CNA APP to grasp the latest news instantly.
The text, images, and audio/video of this website may not be reproduced, broadcast, or publicly transmitted and utilized without authorization.