India’s sub-₹10,000 smartphone sales plunge 65% as prices jump 32% in H1 2026: Counterpoint

India’s budget smartphone market took a major hit in the first half of 2026, with shipments of handsets priced below ₹10,000 plunging 65% year-on-year as average prices in the segment jumped around 32%, according to Counterpoint Research.

The sharp contraction comes as rising memory costs and a weaker rupee push smartphone manufacturers to raise prices. Across the Indian smartphone market, prices increased 16% on average in H1 2026, while the average selling price reached a record $318 in the second quarter, Counterpoint said.

Budget smartphone market takes a sharp hit

The pressure was particularly pronounced at the lower end of the market, where memory accounts for a larger share of device manufacturing costs. Shipments in the ₹10,000-₹15,000 price band, historically one of the largest segments, also declined 20% YoY during the first half.

At the same time, smartphones priced above ₹20,000 continued to grow, supported by higher launch prices, trade-in offers and no-cost EMI schemes, which helped consumers absorb higher upfront prices.

The pricing pressure was driven partly by surging demand for DRAM and NAND from AI data centres, which tightened memory supply. A weaker rupee further increased the cost of imported components, prompting most smartphone brands to pass a significant portion of the increase on to consumers.

Memory costs drive industry-wide price hikes

OnePlus emerged as an exception to the broader pricing trend, raising smartphone prices by 8% on average in H1 2026—half the industry average of 16%. Its steepest individual price increase was 12%, compared with 113% for the rest of the industry, according to Counterpoint.

The lower price increases did not appear to constrain the brand’s volumes. OnePlus shipments rose 49% quarter-on-quarter in Q2 2026, while it gained market share year-on-year even as overall smartphone shipments declined.

OnePlus gains ground despite price pressure

OnePlus was the fastest-growing brand among the top five on online channels in price bands above ₹20,000 during Q2 and ranked No. 1 in the ₹30,000-₹45,000 online segment. It was also the top-selling brand on Amazon Prime Day in the ₹15,000-₹65,000 segment.

Counterpoint expects OnePlus shipments to grow 5% YoY in Q3 2026, even as the overall smartphone market is projected to contract by double digits.

The research firm attributed OnePlus’s relative resilience partly to early component procurement and a nine-model portfolio spanning roughly ₹16,999 to ₹93,999, allowing the company to spread higher costs across its lineup.

With memory prices not expected to ease before 2028 and the rupee continuing to add to import costs, pricing pressure is likely to remain a key challenge for smartphone makers, particularly in India’s highly price-sensitive entry-level market.