India’s smartphone shipments declined 10% year-on-year (YoY) in Q2 2026 (April-June), marking the biggest decline for a June quarter in six years, according to Counterpoint Research’s Monthly India Smartphone Tracker.
Memory prices impact smartphone demand
According to Counterpoint Research, the decline was mainly driven by record-high memory prices and rising component costs, which increased smartphone prices across almost all segments. The research firm said multiple price hikes by smartphone manufacturers resulted in an average smartphone price increase of around 15% by the end of Q2 2026.
Higher device prices, inflationary pressure and weak discretionary spending affected consumer demand and extended smartphone replacement cycles despite promotions and financing initiatives.
Demand and supply pressure
Commenting on the market dynamics, Counterpoint Research Senior Analyst Prachir Singh said,
India’s smartphone market remained under pressure during the quarter, as both demand and supply were adversely affected.
According to Singh, persistent increases in memory and other component costs prompted almost every major OEM to implement multiple rounds of price hikes, resulting in higher device prices. The impact was highest on the mass-market segment, while brands with greater exposure to entry-level and mid-range smartphones saw their market share decline.
Key factors affecting the smartphone market in Q2 2026:
- The sub-Rs. 15,000 segment recorded a 45% YoY decline in shipments.
- Chinese smartphone brands, which are heavily exposed to entry-level and mid-range segments, saw their overall market share fall to the lowest level for a second calendar quarter since 2020.
- Several OEMs expanded their 4G smartphone portfolios in the mass-market segment to address changing consumer demand.
- While 5G remains the long-term growth driver, 4G smartphones continue to serve value-conscious consumers until component costs stabilize.
- The ultra-premium segment above Rs. 45,000 remained relatively resilient, supported by financing options that reduced upfront costs for premium smartphones.
India smartphone brands ranking in Q2 2026
- vivo (excluding iQOO): Led the market with an 18% share. The brand saw growth in the premium segment after the launch of the V70 series, while its budget segment declined due to price hikes across the Y and T series.
- Samsung: Ranked second with 2% YoY growth, supported by demand for the Galaxy A series and flagship Galaxy S series. The Rs. 15,000-Rs. 20,000 segment remained its largest volume contributor through the Galaxy A, M and F series. During the summer sales period, Samsung offered promotions on key models, including the Galaxy A07 5G, Galaxy A17 5G, Galaxy A37 5G, Galaxy A57 5G, Galaxy S25 series and Galaxy S26 series.
- OPPO: Held the third position with a 14% market share, driven by double-digit growth in the above-Rs. 20,000 segment with models including the A6 series and K14 series.
- Xiaomi (including POCO): Ranked fourth with a 13% share. The brand recorded a YoY decline due to price hikes across entry-level and mid-range models, including the Redmi A7, POCO C71 and POCO C75.
- realme: Ranked fifth, with shipment declines linked to price increases across its entry-level and mid-range portfolio, particularly in the sub-Rs. 20,000 segment. The affected models included the P4 and C85 series.
- Apple: Recorded a 3% YoY shipment decline, with its market share reaching 7%. Demand for the iPhone 17 series remained strong, but supply constraints and inventory shortages limited shipment growth.
Nothing records 105% growth
Nothing became India’s fastest-growing smartphone brand in Q2 2026, recording 105% YoY growth, according to Counterpoint Research’s Q2 2026 India Smartphone Shipment Tracker.
Key highlights:
- The growth was driven by demand for the Phone (4a) and Phone (4a) Pro models.
- Nothing’s title sponsorship of Royal Challengers Bengaluru (RCB) during the Indian Premier League (IPL) increased brand visibility during the quarter.
- This marked the ninth time in the last ten consecutive quarters that Nothing emerged as India’s fastest-growing smartphone brand.
- The Phone (4b) became the highest-selling smartphone on Flipkart in the Rs. 30,000+ segment on the first day of sale.
- The limited-edition Phone (4b) RCB Edition sold out in under two hours after hundreds of fans queued outside the Nothing Store in Bengaluru.
Key market trends
- MediaTek continued to lead India’s smartphone chipset market with a 49% shipment share.
- Smartphone financing through NBFCs and credit/debit card EMI accounted for over 50% of mainline smartphone sales in India during Q2 2026.
- Google emerged as the fastest-growing smartphone brand in the ultra-premium segment above Rs. 45,000, recording 68% YoY growth.
- AI+ recorded growth in the entry-level segment, supported by demand for smartphones including the AI+ Nova 2 and Pulse 2.
- Smartphone OEMs implemented multiple price increases in 2026, with the highest increase exceeding 100% of the launch price.
- Rising DRAM and NAND prices increased memory’s share of the bill of materials (BoM) from below 20% to over 45% in the sub-Rs. 15,000 segment.
India smartphone market outlook
Commenting on the market outlook, Counterpoint Research Research Director Tarun Pathak said,
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.
Key outlook points:
- Smartphone memory prices have increased nearly 4x since September 2025 and are expected to rise further, potentially reaching 5x in the coming months.
- Counterpoint expects India’s smartphone market to decline 13% YoY for the full year 2026.
- Component prices are unlikely to normalize before next year, making affordability the industry’s biggest challenge.
- As H2 accounts for the majority of annual smartphone sales, OEMs are expected to focus on portfolio optimization, financing-led affordability and premium smartphone offerings.
- The mass-market segment is expected to remain under pressure, while the premium segment is likely to remain relatively resilient, supported by financing options and consumer preference for high-value devices.