India’s smartphone market began 2026 on a subdued note, with sales declining 9% year-on-year in the first nine weeks, according to Counterpoint Research’s India Weekly Smartphone Sell-out Tracker. The slowdown was driven by supply-side pressures, particularly rising memory component costs, along with seasonal softness typically seen at the start of the year.

Price increases across brands played a key role in dampening demand. More than eight smartphone brands have raised prices of key SKUs so far, with an average hike of ₹1,500, which is expected to increase further. New product launches are also entering the market at higher price points. While consumers were initially less aware of these increases, continued price revisions began to affect store footfall and overall sales.

Republic Day sales provided a temporary boost, especially in the online segment, but the momentum was not sustained. Limited promotional activity and fewer new launches further impacted purchase trends, resulting in weaker retail conversions across channels.

Demand weakens as prices rise, premium segment holds steady

Despite the pressure on volumes, value growth remained steady, supported by continued premiumisation. This trend, which shaped market dynamics through 2025, has extended into early 2026.

Among brands, vivo recorded the highest growth at 19% year-on-year, driven by new launches and strong performance of its Y and T series. Apple grew 12% year-on-year, supported by discounts and sustained demand for its iPhone 17 series.

Commenting on the market dynamics, Senior Research Analyst Prachir Singh said, “India’s smartphone market started the year on a low note, as persistent price increases continued to weigh on consumer demand. Limited promotional intensity and fewer new launches further impacted purchase momentum. All this resulted in weaker retail conversions across channels, reflecting guarded consumer sentiment.”

On the outlook, Research Director Tarun Pathak said, “Ongoing global uncertainties, including geopolitical tensions and rising essential commodity prices, are expected to continue to weigh on discretionary spending, with India’s smartphone market projected to decline by around 10% in 2026."

According to him, brands are likely to maintain a cautious approach, focusing on premium-led growth supported by new launches and targeted financing in this current environment. "While premium segments are expected to remain relatively resilient, affordability constraints and limited financing availability will continue to impact demand in the mass segment, leading to a gradual and uneven recovery," he said.