India’s smartphone market just posted its weakest third quarter in a decade. Shipments fell 20 percent year on year in the three months to September 2026, according to Counterpoint Research, as costlier memory chips pushed handset prices higher and buyers chose to keep their old devices for longer.
Budget Phones Take The Hardest Hit
Handsets priced under Rs 20,000 bore the brunt of the slowdown. Shipments in that segment dropped 47 percent from a year earlier. Component costs climbed through the year and brands passed part of the increase on to buyers, which pushed several popular models into a more expensive bracket and left entry level customers with fewer options.
Shubham Singh, a research analyst at Counterpoint, said buyers are now waiting longer before replacing a phone. Brands have responded by chasing profit instead of volume, managing their portfolios carefully and keeping retail stock tight rather than loading the channel ahead of the festive season.
Samsung Returns To The Top Spot
Samsung ended a run of nine quarters outside the top position and returned as India’s largest smartphone brand with a 17 percent share. It was the only brand in the top five to record annual shipment growth. Vivo followed with 16 percent, Oppo held 12 percent, and Xiaomi together with Poco accounted for a combined 12 percent.
The one bright spot was AI first handsets. Shipments in that category rose 306 percent year on year, though from a small base, as phone makers leaned on on device AI features to justify higher price tags and give buyers a reason to upgrade.
Prices May Climb Again After The Festive Season
Counterpoint expects the full year 2026 market to close about 13 percent lower than 2025. It also warned that handset prices could rise again once the festive season ends, because memory costs have not eased and brands still need to protect margins.
To hold on to buyers, companies may ship trimmed specifications in some price bands, bring back more 4G models, and lean harder on no cost EMI, exchange offers and cash discounts to pull customers into stores.
