Smartphone prices in India rose sharply in 2026 as memory chip costs climbed, and shipments fell: IDC counted an 11.1% year-on-year drop in the April–June quarter, to 33.2 million phones. The average selling price reached a record $315 (about ₹30,000), up 14.4% from a year earlier.
Key facts
- Q1 2026 shipments: down 4.1% (IDC); CMR measured a 2% decline
- Q2 2026 shipments: down 11.1% to 33.2 million (IDC); down 10%, the steepest June-quarter fall in six years (Counterpoint)
- Average selling price: record $315, up 14.4% (IDC)
- Forecasts: Counterpoint expects a 13% fall for 2026; IDC expects more than 15% in the second half
Why prices are rising
Counterpoint says memory prices rose nearly fourfold from September 2025, as AI data centres absorbed DRAM and NAND supply. That pushed average phone prices up roughly 15% by the end of Q2. Brands raised prices on key models repeatedly, by an average of about ₹1,500 per model in Counterpoint's March data.
Budget phones are disappearing
The cheapest segment was hit hardest. IDC reports shipments of phones under $100 fell 74.3% year on year in Q2, while the $400–$600 segment grew 60.3%. Reports in August described phones under ₹10,000 as fast disappearing from the market.
What it means for retailers
Fewer units at higher prices change the shop floor: customers who used to buy under ₹10,000 now face fewer choices, and finance and EMI matter more. IDC data also shows offline stores gaining share as online shipments fell, so in-store selling and financing offers are becoming more important.
Frequently asked questions
Why are smartphone prices going up in India?
Mainly because memory chip prices rose sharply from late 2025 as AI data centres absorbed supply.
How much have smartphone sales fallen?
IDC counted an 11.1% drop in Q2 2026; Counterpoint forecasts a 13% fall for the full year.
Sources: 91mobiles (IDC Q2 2026), 91mobiles (IDC Q1 2026), Free Press Journal (IDC H2 forecast), Business Today.
Correction (October 26, 2026): An earlier version of this article said a 30% sales drop was forecast. No research firm forecast 30%; Counterpoint forecasts 13% for 2026. The article has been rewritten with the published data.
