Smartphone sales fall 9% on rising memory prices

NEW DELHI: India's smartphone sales declined 9% on-year in the first nine weeks of 2026, according to market research firm Counterpoint Research. The slowdown was mainly driven by rising memory component costs, coupled with typical softness in demand seen at the start of the year.

The research firm said rising memory costs have led Android handset brands to raise prices on existing models, while new products are also being introduced at higher prices. Until the first week of March, more than eight brands had already increased prices of their existing handsets, with an average hike of Rs 1,500 which is expected to rise further, the research firm 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," said Tarun Pathak, research director, Counterpoint Research.


The research firm said consumers were initially less aware of the price hikes, but continued hikes by multiple brands gradually impacted store footfall and overall sales. Apple also grew 12% on-year during the period supported by discounts and sustained demand for iPhone 17 models. Apple has not raised prices of existing models in India.

"Persistent price increases weighed 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 Prachir Singh, senior analyst, Counterpoint Research.