India’s mass-market mobile segment declined 45% YoY
India's smartphone market experienced a 10% decline in Q2 2026, with the mass-market segment falling by 45% due to rising memory costs. While budget phones struggled, the ultra-premium segment remained resilient due to increased financing options.
Why it matters
The data reflects broader economic pressures on consumer electronics and the shifting purchasing power of the Indian middle class.
India’s mass-market mobile segment (sub-15k) has been hit the hardest, with its shipments declining 45% year-over-year (YoY), noted Counterpoint Research due to rising memory prices, which has forced OEMs to hike smartphone prices and expand their 4G portfolios to address changing market dynamics.
However, the ultra-premium segment (above 45k) remained strong as people are moving towards premiumisation due to availability of various financing options.
“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. 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% YoY for the full year,” said Tarun Pathak, Research Director, Counterpoint.
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