“Volume Down, But India’s Smartphone Market Isn’t Losing Steam”

India's smartphone market showed resilience in the second quarter of 2026 with market value rising 1.7 per cent year-on-year despite an 11 per cent decline in shipments as consumers increasingly shifted towards higher-priced devices, according to a report released on Tuesday. According to analysis by IDC, smartphone shipments in India stood at 33.2 million units in Q2 2026, while the average selling price (ASP) rose 14.4 per cent year-on-year to a record $315, reflecting continued premiumisation of the market.

The growth in market value came even as shipments declined amid an ongoing global memory chip shortage, which pushed up component costs and squeezed affordability, particularly in the entry-level segment. The market's first half shipments declined 7.9 per cent year-on-year to 64.2 million units, the lowest first-half volume in five years. However, demand remained relatively resilient in higher value segments. The $400-$600 price band was the strongest performer with shipments growing 60.3 per cent year-on-year and its market share nearly doubling to 8.6 per cent from 4.8 per cent.

Meanwhile, the $600-$800 segment remained broadly flat while shipments in the $800 plus category declined only 5 per cent. The mass-budget segment priced between $100 and $200, which accounted for 46.8 per cent of the market. According to the report, the shift towards premium and upper-mid segments was partly driven by consumers moving up the price ladder as rising memory costs made entry-level smartphones increasingly expensive. Shipments in the sub-$100 segment plunged 74.3 per cent year-on-year in Q2, reducing its market share to 4.5 per cent from 15.6 per cent a year earlier.

Apple and Samsung were among the brands that maintained ground in the shrinking market. Samsung's market share increased to 16.4 per cent from 14.5 per cent, while Apple's share rose to 8.5 per cent from 7.5 per cent. The offline channel also showed resilience with shipments declining only 3.6 per cent year-on-year and its market share increasing to 58.1 per cent from 53.6 per cent.

However, online shipments declined 19.8 per cent with its share falling to 41.9 per cent. IDC Senior Research Analyst Aditya Rampal said rising memory costs had pushed smartphone prices higher, with financing options likely to play an important role in sustaining affordability during the festive season. However, the report said stabilising memory prices, wider financing, EMI options and stronger festive demand in the mid-premium segment could support market recovery.

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