NEW DELHI — India’s smartphone market posted one of its weakest quarterly performances in recent years, as higher memory costs pushed up device prices and led many consumers to delay upgrades, according to a new report from CyberMedia Research.
Smartphone shipments in India fell 2% year over year in the first quarter of 2026, according to CMR’s India Mobile Handset Market Review. The decline was driven largely by rising DRAM and NAND flash prices, which increased costs for device makers and forced brands to adjust pricing.
The impact varied sharply by segment. Premium smartphones grew 25%, while the affordable segment declined 46%. The value-for-money segment fell 12%.
Menka Kumari, senior analyst with CMR’s Industry Intelligence Group, said India’s smartphone market entered 2026 under clear cost pressure because of ongoing memory supply constraints.
“A sharp rise in DRAM and NAND prices has increased device costs, forcing brands to recalibrate pricing across segments. This has resulted in slower upgrade cycles,” Kumari said.
The pressure was especially visible in the value-for-money category, where consumers remain highly price-sensitive. CMR said buyers are becoming more selective, focusing on tangible value rather than frequent upgrades.
The feature phone market also continued to weaken. Shipments of 2G feature phones fell 12% year over year, while 4G feature phone shipments dropped 41%.
CMR expects India’s smartphone market to decline 10% to 12% for the full 2026 calendar year. The firm said affordable and value-for-money devices are likely to face continued volume pressure, margin compression and cautious consumer demand.
Near-term demand is expected to remain uneven as price-sensitive buyers delay purchases because of sustained cost pressures.
Amit Sharma, senior analyst with CMR’s Industry Intelligence Group, said smartphone makers are increasingly focusing on premium models, leaving a gap in the 5,000-rupee to 15,000-rupee price range.
“For smartphone OEMs, that can deliver differentiated value at accessible price points. This represents a significant and largely untapped opportunity,” Sharma said. (Source: IANS)
