India's smartphone shipments slump 20 pc in Q3 over high memory costs
India’s smartphone shipments fell 20 per cent year-on-year in Q3 2026 to their lowest level in a decade as record-high memory prices pushed device costs up and pulled down volumes for most brands, a report said on Friday.
Amid persistently soft demand, OEMs held back on channel inventory, even ahead of the festive season, the report from Counterpoint Research said.
The report added that sub0-Rs 20,000 shipments declined by 47 per cent in Q3 2026 as rising model prices pushed devices into higher price bands.
“Rising component costs pushed device prices higher, putting increasing pressure on affordability and weakening the traditional mass-market volume engine, particularly below Rs 15,000," said Research Analyst Shubham Singh.
Research Director Tarun Pathak said that India’s smartphone market is forecasted to shrink by around 13 per cent in 2026, with continued pricing pressure weighing on affordability and replacement demand.
The post-festive seasonal slowdown will add to the pressure, while elevated component costs are likely to drive another round of price hikes after the festive season sale, he said.
The impact is already visible in the mass market, where OEMs are restructuring portfolios by introducing more 4G and lower-specification models and trading down specifications across some price segments to manage costs while maintaining price points.
The market is likely to remain on a challenging footing in 2027, as higher device prices continue to extend replacement cycles and limit volume recovery. Growth opportunities will increasingly shift toward the premium and upper-mid segments, while the mass market remains under pressure from affordability constraints and tighter OEM margins.
“With upfront prices rising, no-cost EMIs, exchange offers and retailer-led promotions will become increasingly important conversion levers, helping consumers manage higher upgrade costs,” the report added.
