India Smartphone Shipments Fall 10% as Memory Prices Surge

India’s smartphone shipments dropped sharply as surging memory chip prices combined with weakening consumer demand.

Direct Hit from Memory Price Hikes

India’s smartphone shipments in the second quarter of this year fell 10% from a year earlier, according to Counterpoint Research’s Monthly India Smartphone Tracker released on the 21st. This marks the steepest drop for a June quarter in the past six years.

The surge in memory chip prices was cited as the biggest factor behind the downturn. Smartphone memory prices have risen about fourfold since September last year, with observations that they could climb to as much as five times within the coming months.

As a result, the share of memory in the bill of materials (BoM) for budget smartphones priced under 15,000 rupees (about 230,000 won) rose sharply, from less than 20% to more than 45%.

As manufacturers unable to withstand the component price pressure raised prices one after another, the average smartphone price rose about 15% as of the end of the second quarter. Some models were found to have jumped more than 100% from their launch prices. Added to this, macroeconomic uncertainty and inflationary pressure caused real replacement demand to visibly contract.

Only Samsung Grows, While Apple Faces Inventory Shortage

By brand, vivo held onto first place with an 18% share on the back of its premium V70 launch, but its overall shipments fell by double digits due to price hikes on its budget Y and T series.

Samsung Electronics was the only one among the top five brands to grow 2% from a year earlier, rising to second place in market share. Solid demand for the Galaxy A series and the flagship S25 and S26 series, along with sweeping summer discount promotions, appears to have supported its performance.

OPPO followed, holding third place with a 14% share, trailed by Xiaomi (13%) and Realme. Both brands saw shipments decline due to price increases in their sub-20,000 rupee product lines.

Apple’s shipments fell 3% to a 7% share, as inventory shortages across online and offline channels weighed on results despite demand for the iPhone 17 series.

“As memory prices continue to rise, the annual India smartphone market is projected to decline 13% in 2026 from the previous year,” said Tarun Pathak, a director at Counterpoint Research. “With component prices unlikely to normalize before next year, smartphone makers are expected to focus on expanding premium lineups using financing programs and optimizing their portfolios, rather than on the lower-margin budget segment.”