Smartphone sales slip 14% after July online sales blitz; price hikes put demand under pressure: Counterpoint

The post-sale boost to India’s smartphone market proved short-lived, with weekly sales slipping 14% year-on-year between Week 14 and Week 31, as higher handset prices and cautious consumer spending continued to weigh on demand. Sales declined for three consecutive weeks after July’s major online sales events, signalling that discounts are failing to deliver sustained momentum.

According to Counterpoint Research’s India Weekly Smartphone Sellout Tracker, only two of the 18 weeks during the period recorded year-on-year growth. Week 20 and Week 27 saw sales rise amid major promotional activity, but the gains quickly faded once the sale events ended.

July sales boost fades quickly

The weakness became particularly visible after Amazon Prime Day and Flipkart GOAT Sale in July, with smartphone sales declining in each of the following three weeks. The trend suggests that the online sales events may have brought forward purchases rather than generated fresh demand.

Affordability has emerged as a key constraint. Counterpoint said prices of affected smartphone models, particularly in the mass-market segment, increased by an average of around ₹3,200 between April and July 2026. With handsets becoming more expensive, some consumers are delaying replacement purchases or waiting for discounts and financing offers.

“Rising device prices are making consumers increasingly value-conscious and more dependent on promotional offers,” said Prachir Singh, senior analyst at Counterpoint Research. He added that the three-week decline following the July sales indicates that promotional events are largely pulling forward demand rather than creating sustained market momentum.

Apple bucks broader market slowdown

The weakness was not uniform across brands. Apple recorded 15% YoY sales growth during Week 14-31, the strongest performance among the major brands tracked by Counterpoint. Continued demand for the iPhone 17 series, coupled with affordability offers, supported its sales.

OPPO and Samsung each grew 4% YoY during the period. OPPO benefited from demand for its budget A and K series, while Samsung gained momentum from its focus on the mainline channel and promotional offers across its A and S series.

Festive season holds key to recovery

Going ahead, Counterpoint expects demand to improve gradually in the coming months as brands step up discounts, financing schemes and new launches ahead of the festive season. However, persistent price increases could continue to constrain replacement demand, particularly among mass-market consumers.

The research firm expects the overall smartphone market to contract around 13% in 2026, although the second half could perform better than the first as festive-season promotions help revive demand.