India smartphone shipments fall 11.1 per cent as component costs hit demand

MUMBAI: The smartphone market has hit a rough patch, and this time it is not a software glitch. India’s handset shipments fell 11.1 per cent year-on-year to 33.2 million units in the April-June quarter, as rising component costs pushed up prices and made consumers think twice before upgrading.

According to IDC’s Worldwide Quarterly Mobile Phone Tracker, the decline was among the steepest seen in recent quarters, with Chinese smartphone brands bearing much of the pressure. India’s smartphone shipments for the first half of 2026 fell 7.9 per cent to 64.2 million units, the lowest first-half volume in five years.

Yet, in a curious twist, the market managed to grow in value even while shrinking in volume. Smartphone market value increased 3.6 per cent, helped by higher average selling prices as manufacturers passed on increased component costs and reduced discounts.

For Chinese brands, however, the numbers were less forgiving. Vivo remained India’s largest smartphone maker, but its shipments declined 13.9 per cent, pulling its market share down to 18.4 per cent from 19 per cent a year earlier.

Oppo shipments dropped 8.5 per cent, while Xiaomi fell 10 per cent and realme declined 14.2 per cent. Poco shipments were down 12.3 per cent, while iQOO recorded the sharpest fall among the leading brands, with shipments plunging 61 per cent year-on-year.

The pressure is particularly acute at the affordable end of the market. Rising memory and component costs have pushed up prices for entry-level and mid-range handsets, the very segments where several Chinese brands have traditionally built their volumes.

Meanwhile, Samsung and Apple managed to buck the broader downturn. Samsung’s shipments edged up 0.4 per cent, lifting its market share to 16.4 per cent from 14.5 per cent. Apple grew 0.7 per cent, taking its share to 8.5 per cent from 7.5 per cent.

Other brands had a mixed quarter. Motorola shipments declined 8.9 per cent, while OnePlus slipped a comparatively modest 2.5 per cent.

The numbers point to an increasingly premium-shaped smartphone market. Consumers may be buying fewer devices, but the phones that are being sold are becoming more expensive, allowing overall market value to rise despite falling shipments.

The squeeze is particularly visible below Rs 15,000, where higher input costs are affecting affordability and extending replacement cycles. Counterpoint Research also reported in July that Chinese brands’ combined market share had fallen to its lowest level for a second quarter since 2020, linking the weakness to their heavy dependence on entry and mid-tier segments.

There is another shift taking place at the other end of the affordability equation. As some consumers in smaller cities postpone upgrades to pricier 5G devices, manufacturers are expanding their 4G smartphone portfolios. IDC data cited by Moneycontrol showed 4G handsets gaining share as consumers become more cautious about spending.

For now, India’s smartphone market appears caught between two forces: fewer phones being sold at the mass end, and more value being generated at the premium end. The result is a market where the volume may be shrinking, but the price tag is doing the growing.