India’s smartphone shipments dropped by 3% year-on-year in the first quarter of 2026, marking the market’s weakest quarterly performance in six years. This decline reflects significant pressures from rising costs, price increases, and soft consumer demand, according to a report from Counterpoint Research on Friday.
The study revealed that more than 80 smartphone models experienced an average price hike of 15% during this period. Analysts expect further price increases of 15% to 20% in the second quarter, which could further dampen sales.
Prachir Singh, a senior analyst at Counterpoint Research, explained the situation: “The market is facing a clear affordability squeeze, driven by sharp memory-led cost inflation and currency pressures that have forced OEMs to raise prices across key models.” This indicates that manufacturers are passing on higher production costs to consumers.
Tarun Pathak, a research director, painted a challenging picture for the near future. He stated, “India’s smartphone market is expected to remain under pressure in the near term, with Q2 2026 likely to see a double-digit decline.” This forecast suggests a continued struggle for the industry in the coming months.
Despite the overall market slowdown, some brands managed to perform relatively well. Vivo led the smartphone market with a 21% share, followed closely by Samsung and Oppo. These brands appear to have navigated the challenging conditions better than some competitors.
Apple also saw its market share grow, reaching 9%, thanks to consistent demand for its iPhone 17 series. This highlights the continued appeal of premium devices even in a tightening market.
Google stood out as the fastest-growing premium brand, with its shipments surging by 39% year-on-year. This impressive growth was largely fueled by its AI-led features, which seem to be attracting consumers looking for advanced technology.
The affordability squeeze and rising costs are creating a tough environment for both consumers and manufacturers in India’s once-booming smartphone market. The coming quarters will show how brands adapt to these new pressures and whether demand can rebound.
