India witnessed a 10% decline in smartphone shipments during the April-June quarter, marking the largest drop for a June quarter in six years. This decrease was primarily driven by soaring memory prices, leading to increased smartphone costs across various segments. The market faced challenges due to weakened consumer demand and extended replacement cycles despite promotional efforts and financing initiatives.
The supply side was also affected, with major Original Equipment Manufacturers (OEMs) implementing multiple price hikes in response to rising memory and component costs. This resulted in an average smartphone price surge of about 15% by the quarter’s end, as highlighted by senior analyst Prachir Singh. The overall smartphone market in India struggled as both demand and supply were impacted.
Notably, the mass-market segment, particularly devices priced below Rs 15,000, experienced a significant 45% year-on-year decline in shipments. To adapt to changing market dynamics, many OEMs broadened their 4G product offerings in this segment. While 5G technology is seen as a future growth driver, the role of 4G remains crucial in catering to cost-conscious consumers until component costs stabilize, according to the analyst.
Despite the challenges faced by the market, the ultra-premium segment, comprising smartphones priced above Rs 45,000, showed resilience. This was supported by the increasing popularity of financing options that made premium smartphones more affordable to consumers, mitigating the impact of overall pricing pressures. The market outlook for India’s smartphone sector remains challenging for the rest of the year due to elevated memory and component costs, which are expected to sustain high device prices, as noted by Research Director Tarun Pathak.
Smartphone memory prices have surged nearly four times since September 2025 and are projected to further increase, potentially reaching five times in the upcoming months. Consequently, a 13% year-on-year decline in the market is anticipated for the full year, reflecting the persisting cost challenges faced by the industry.
