India’s smartphone market is facing a combination of headwinds driven by smartphones becoming more expensive across segments, and a weakening consumer demand as well as discretionary spending, as shipments see the biggest June quarter decline in six years. Counterpoint Research’s latest India Smartphone Shipments in Q2 2026 data pegs this decline in shipments at 10% year-on-year. This follows the Q1 decline of 3%, which itself was marked as the weakest quarter in six years
There isn’t much good news awaiting the smartphone market over the horizon too. “We expect India’s smartphone market to remain under pressure through the rest of the year, as elevated memory and component costs continue to keep device prices high. Smartphone memory prices have increased nearly 4x since September 2025 and are expected to rise further, potentially reaching 5x in the coming months. As a result, we expect the market to decline by 13% YoY for the full year,” says Tarun Pathak, Research Director at Counterpoint.
There are some bright spots amid an overall gloomy picture, with the research pointing to the ultra-premium segment (above ₹45,000) remaining resilient due to a growing adoption of financing schemes that reduce the upfront cost of buying a premium phone.
Vivo leads with 17.8% market share, which itself is a significant drop from the 19.2% share in Q2 2025. Samsung is at a very close second with 17.6% share (up from 15.5% year on year). Oppo (13.6%; an increase from 13.2%) and Xiaomi (9.4%; up from 8%) follow.
“On the supply side, persistent increases in memory and other component costs prompted almost every major OEM to implement multiple rounds of price hikes, resulting in an average smartphone price hike of around 15% by the end of the second quarter,” says senior analyst Prachir Singh.
“The mass-market segment (sub-INR 15,000) was the hardest hit, with its shipments declining 45% YoY. As most Chinese brands are heavily exposed to the entry-and mid-tier segments, their overall market share fell to its lowest level for a second calendar quarter since 2020,” he adds.
Counterpoint notes that Apple’s shipments declined 3% YoY in Q2 2026, with its market share now at 7%. “While consumer demand for the iPhone 17 series remained strong, persistent supply constraints and inventory shortages across online and offline channels limited the brand’s shipment growth during the quarter,” they say.
There are a couple of trends worth keeping an eye on in the quarters ahead, like the chipmakers’ share. The latest data pegs MediaTek as the leader in India’s smartphone chipset market with a 49% shipment share.
Google emerged as the fastest-growing smartphone brand in the ultra-premium segment (> ₹45,000 price) in Q2 2026, posting 68% YoY growth for its Pixel phone portfolio. The consensus is that the tech giant has benefited from stronger than usual marketing push, and more offline visibility of Pixel phones for potential buyers. Google has also refrained from any price hikes, thus far.
Pathak warns that the second half of 2026, also the period that is marked by festive sales, isn’t going to be any easier for phone makers to navigate.
“Since component prices are unlikely to normalise before next year, affordability will remain the industry’s biggest challenge. As H2 accounts for the majority of annual smartphone sales, OEMs are expected to focus on portfolio optimisation, financing-led affordability, and premium offerings to support demand,” he says.
There is expectation that while the more affordable price points are unlikely to witness a positive trend, the premium phone segment could continue the trend of resilience, further supported by financing options.
