Smartphone shipments in India drop 10 pc in June quarter over memory prices
New Delhi, July 17
India's smartphone shipments fell 10 per cent in the April-June quarter, the biggest for a June quarter in six years, a report showed on Friday.
The decline was mainly driven by record-high memory prices, which increased smartphone prices across almost all segments, weakening consumer demand and extending replacement cycles, despite promotions and financing initiatives, according to Counterpoint Research.
India's smartphone market remained under pressure during the quarter, as both demand and supply were adversely affected.
"On the supply side, persistent increases in memory and other component costs prompted almost every major OEM to implement multiple rounds of price hikes, resulting in an average smartphone price hike of around 15 per cent by the end of the second quarter," said senior analyst Prachir Singh.
At the same time, macroeconomic headwinds, inflationary pressures and weak discretionary spending weighed on replacement demand.
The mass-market segment (sub-Rs 15,000) was the hardest hit, with its shipments declining 45 per cent YoY.
In response, many OEMs expanded their 4G portfolios in the mass-market segment to better address changing market conditions. While 5G remains the long-term growth driver, 4G will continue to play a critical role in serving value-conscious consumers until component costs stabilise, said the analyst.
Meanwhile, the ultra-premium segment (above Rs 45,000) remained relatively resilient, supported by the growing adoption of financing options.
These financing schemes reduced the upfront cost of premium smartphones, making them more accessible to consumers despite the broader pricing pressures.
"We expect India's smartphone market to remain under pressure through the rest of the year, as elevated memory and component costs continue to keep device prices high," said Research Director Tarun Pathak.
Smartphone memory prices have increased nearly 4x since September 2025 and are expected to rise further, potentially reaching 5x in the coming months.
"As a result, we expect the market to decline by 13 per cent YoY for the full year," he noted.
— IANS
Reader Comments
Finally someone acknowledges the 4G market still matters! In smaller cities like where my parents live, 5G is still spotty and people just want affordable phones. ₹15,000 and under segment being hit 45% is huge 😔 We need more competition in budget segment, not just flagship launches every month.
The article says memory prices are up 4x since September 2025! That's insane. But honestly, how much of this price hike is actual component costs vs companies just using any excuse to increase margins? I work in supply chain and some of these price bumps feel excessive. Ultra-premium segment doing well shows there's still money to be made.
The rise of financing options for premium phones is interesting. EMIs on phones have become so common now, my younger brother financed an iPhone for 24 months! 🤦♀️ But it's making Rs 45k+ phones accessible, even if it's bad for savings. I just wish mass market phones got similar financing support instead of pushing people into debt for flagships.
Good to see Indian brands expanding 4G portfolios. Xiaomi, Realme, Samsung need to bring back reliable mid-range options under ₹12,000. These brands are forcing features like 5G and AMOLED screens on budget phones when all we want is a decent processor and good battery that lasts 2 years. Keep it simple, folks!
"We expect market to decline 13% for full year" - this is bad news for the Make in
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