India’s smartphone industry had a difficult April-June quarter, but the slowdown did not affect every price segment equally. While the market as a whole recorded a 10% year-on-year decline in shipments, premium smartphones continued to show relative resilience, highlighting a widening gap between value-conscious and high-end buyers, according to Counterpoint Research.

The biggest setback came from the entry-level segment. Smartphones priced below ₹15,000 witnessed a steep 45% drop in shipments compared with the same period last year, reflecting the growing pressure that rising handset prices are placing on budget-conscious consumers.

Counterpoint said affordability has emerged as the industry’s primary challenge. Higher component costs have pushed up retail prices across several categories, making it harder for consumers looking for affordable devices to upgrade. Many buyers chose to postpone purchases instead of replacing their existing smartphones.

The research firm noted that average smartphone selling prices climbed by roughly 15% during the quarter as manufacturers continued to deal with increasing production costs. Memory chips, one of the key cost drivers, have become significantly more expensive over the past year, leaving brands with limited room to keep prices unchanged.

While lower-priced devices struggled, premium smartphones were supported by easy financing options. Counterpoint said instalment-based purchases have become increasingly common, with more than half of smartphones sold through India’s organised offline retail network during the quarter being financed through EMI schemes or non-banking financial companies. Lower upfront payments helped consumers continue purchasing higher-priced models despite the broader market slowdown.

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Apple’s performance reflected this trend. The company reported a relatively modest 3% decline in iPhone shipments during the quarter, considerably smaller than the overall market contraction. According to Counterpoint, the dip was largely linked to inventory shortages across retail channels rather than weakening consumer demand for Apple’s latest devices.

Among smartphone brands, Vivo retained the top position in the Indian market despite lower shipment volumes. Samsung stood out as the only major vendor to register shipment growth during the quarter, helped by healthy demand for its Galaxy A-series and premium smartphones. Xiaomi, Oppo and Realme, whose portfolios are more concentrated in the mass-market segment, all recorded declines.

The premium Android category also continued to expand. Counterpoint reported that Nothing more than doubled its shipments compared with a year ago, while Google’s Pixel business posted strong double-digit growth, suggesting that demand for premium Android devices remains healthy.

Looking ahead, Counterpoint expects pricing pressures to remain a key concern for the industry. As component costs continue to stay elevated, smartphone makers are likely to focus on financing programmes, product mix optimisation and premium offerings to navigate the rest of 2026. The research firm expects India’s overall smartphone shipments to decline by 13% for the full year.

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First Published on July 27, 2026, 12:24:19 IST