Rising memory costs pushes smartphone sales down by 9% in 2026

India’s smartphone sales declined 9% YoY in the first nine weeks of 2026 due to rising memory component costs, coupled with seasonal softness at the start of the year, leading to weaker retail conversions across channels, noted Counterpoint.

“Rising memory costs have led Android OEMs to raise prices on existing models, while new products are also being introduced at higher price points,” the research firm added.

“Average price of a smartphone has been gone up by ₹1,500, which is expected to grow further. Memory prices are expected to increase through 2026, forcing OEMs to rethink their margin and shipment strategies.”

“India’s smartphone market started the year on a low note, as persistent price increases continued to weigh on consumer demand. Limited promotional intensity and fewer new launches further impacted purchase momentum. All this resulted in weaker retail conversions across channels, reflecting guarded consumer sentiment,” said Senior Research Analyst Prachir Singh.

While volumes remained under pressure, value growth continued to hold steady, driven by sustained premiumisation, the report mentioned.

At 19% YoY, Vivo recorded the strongest sales growth in the first nine weeks of 2026, driven by Y and T series. Apple grew 12% YoY, supported by discounts and sustained demand for its iPhone 17 series.

Research Director Tarun Pathak said, “Ongoing global uncertainties, including geopolitical tensions and rising essential commodity prices, are expected to continue to weigh on discretionary spending, with India’s smartphone market projected to decline by around 10% in 2026. In this environment, brands are likely to maintain a cautious approach, focusing on premium-led growth supported by new launches and targeted financing. While premium segments are expected to remain relatively resilient, affordability constraints and limited financing availability will continue to impact demand in the mass segment, leading to a gradual and uneven recovery.”