India's smartphone market shows resilience despite volume decline: Report
New Delhi, Aug 11
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.
— IANS
Reader Comments
The sub-$100 segment falling by 74% is concerning though. That's a lot of people who simply can't afford a smartphone anymore, especially in rural areas. EMI options are good, but we need to think about digital divide too. Not everyone can pay in EMIs when incomes are uncertain. 🙁
Actually this is a good trend! Selling fewer but higher-value phones means better margins for companies and better phone longevity for users. Plus, the offline channel growing to 58% is great news for local retailers and jobs in the kirana-tech ecosystem. Really hope festive season boost comes through. 🤞
I'm not convinced this "premiumisation" is all consumer-driven. The component shortage and inflation is pushing prices up by force. Many people are delaying upgrades because phones are just too expensive now. The $400-$600 growth is nice, but it's also because that's the new "mid-range" for most people. Let's not cheer for a situation where basic tech is becoming unaffordable for the common person.
Honestly, I'm one of those who moved from ₹8k phone to ₹30k phone. The difference in build quality, camera, and daily performance is huge. Once you go premium, you can't go back. And with five years of software updates on these new phones, they last longer too. It's actually more economical in the long run! 💯
Apple at 8.5% share is interesting! The iPhone is becoming more mainstream in India now with all the financing and old model discounts. But does anyone else
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