New Delhi: India’s smartphone market recorded its sharpest June quarter decline in six years, with shipments falling 10 per cent year-on-year in Q2 2026, according to Counterpoint Research. This slow-down follows a subdued first quarter of the year and is caused by the increased pressure from higher smartphone pricing, cautious consumers’ spending and increasing component costs.
The drop indicates that buyers are putting off improvements, particularly in the lower end of the market where price is still the primary concern. As easier financing options keep premium devices moving the wheels, the market just cannot keep up with continued price hikes, creating a significant discrepancy between demand and price.
The memory market has seen prices rise by almost 400 per cent since September 2025, which has resulted in the majority of smartphone manufacturers raising their retail prices by nearly 15 per cent by the end of the second quarter, according to Counterpoint Research. The sub-Rs 15,000 segment took a hit with shipments declining a whopping 45 per cent year-on-year, topping the list of the lowest-end buyers, said Sr Analyst Prachir Singh.
Vivo held the first place with a 17.8 per cent market share, with Samsung at 17.6 per cent right behind. Oppo and Xiaomi finished third and fourth, respectively, with Apple having a 7 per cent market share, despite having good demand for the iPhone 17 series but facing supply constraints, as the company’s shipment numbers dropped 3 per cent.
The premium segment above Rs 45,000 is still relatively robust, according to Counterpoint Research, because financing options help to lower the entry price of purchasing the vehicle. The Pixel line was also the fastest-growing premium smartphone brand, as Google has not raised the price of any of its phones and increased its offline availability by 68 per cent year-on-year.
Although this is likely to pressure the market for the remainder of 2026, Research Director Tarun Pathak cautioned that component costs remain elevated. Festive sales can help with uptake, but financing offers, product portfolio changes and higher-priced devices are likely to be more likely to help sales grow than discounting.
While the overall market was slow, it was difficult to find one of the biggest gainers in the quarter ending 2026 Q2. In the quarter, the company shipped 105 per cent year-on-year and became India’s fastest-growing smartphone brand, according to data from Indian data analytics firm Counterpoint Research’s India Smartphone Shipment Tracker.
The momentum kept going with the launch of the Nothing Phone (4b) which created the highest sales figure for Flipkart’s Rs 30,000+ smartphone category on the first day of sale. The Nothing Phone (4b) RCB Edition also sold out in less than two hours, highlighting strong consumer interest even as the broader smartphone market remains under pressure.
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Pragya is a Science and Technology reporter, has Master degree in Journalism, covering a range of stories including space, gadgets and how tech is transforming our lives. She has 4+ years of industry experience in Digital Media and Content Writing. 15+ years of practice in yoga philosophy to every day, and that’s one way she strive to build meaningful experiences.