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India’s smartphone market declined 3% year-on-year in the first quarter of 2026, marking its weakest performance in six years, as rising component costs and subdued consumer demand weighed on sales, according to Counterpoint Research.
The slowdown was driven by a combination of memory price inflation, currency pressures, and higher device prices, which impacted affordability—particularly in the entry-level segment. Analysts noted that average price hikes of over ₹1,500 hit the sub-₹15,000 category the hardest, leading to slower upgrade cycles and weaker retail conversions.
Vendors attempted to counter rising bill-of-materials (BOM) costs by accelerating product launches, with nearly one-third of new models introduced earlier in the quarter. However, the strategy had limited impact on demand as consumers remained cautious amid broader economic pressures, the research firm said in a statement.
In terms of market share, vivo led the Indian smartphone market with a 21% share, supported by a strong product portfolio and channel execution. Samsung followed in second place, while OPPO secured the third position with continued growth in budget and mid-premium segments. Xiaomi and realme rounded out the top five, with traction largely concentrated in the ₹10,000–₹20,000 price band.
Premium segments showed relative resilience. Apple’s share rose to 9%, driven by strong demand for its latest iPhone lineup and aggressive financing offers, while Google emerged as the fastest-growing premium brand, benefiting from AI-led features and marketing initiatives.
Among emerging players, Nothing recorded the fastest growth overall, expanding 47% year-on-year, supported by offline expansion and strong demand for its latest devices, Counterpoint said.
Looking ahead, the outlook remains challenging. Counterpoint expects the market to decline further in the near term, with a potential double-digit drop in Q2 2026 and an overall 10% contraction for the year. Rising memory prices—already up fourfold over recent quarters—and continued pressure on entry-level demand are expected to prolong the downturn.
The findings highlight a growing divide in the market, where premium devices continue to perform relatively well, while affordability constraints weigh heavily on mass-market demand.
The slowdown was driven by a combination of memory price inflation, currency pressures, and higher device prices, which impacted affordability—particularly in the entry-level segment. Analysts noted that average price hikes of over ₹1,500 hit the sub-₹15,000 category the hardest, leading to slower upgrade cycles and weaker retail conversions.
Vendors attempted to counter rising bill-of-materials (BOM) costs by accelerating product launches, with nearly one-third of new models introduced earlier in the quarter. However, the strategy had limited impact on demand as consumers remained cautious amid broader economic pressures, the research firm said in a statement.
In terms of market share, vivo led the Indian smartphone market with a 21% share, supported by a strong product portfolio and channel execution. Samsung followed in second place, while OPPO secured the third position with continued growth in budget and mid-premium segments. Xiaomi and realme rounded out the top five, with traction largely concentrated in the ₹10,000–₹20,000 price band.
Premium segments showed relative resilience. Apple’s share rose to 9%, driven by strong demand for its latest iPhone lineup and aggressive financing offers, while Google emerged as the fastest-growing premium brand, benefiting from AI-led features and marketing initiatives.
Among emerging players, Nothing recorded the fastest growth overall, expanding 47% year-on-year, supported by offline expansion and strong demand for its latest devices, Counterpoint said.
Looking ahead, the outlook remains challenging. Counterpoint expects the market to decline further in the near term, with a potential double-digit drop in Q2 2026 and an overall 10% contraction for the year. Rising memory prices—already up fourfold over recent quarters—and continued pressure on entry-level demand are expected to prolong the downturn.
The findings highlight a growing divide in the market, where premium devices continue to perform relatively well, while affordability constraints weigh heavily on mass-market demand.
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