Steep prices spoil India’s smartphone festive party

New Delhi: India's smartphone market witnessed a 26% year-on-year decline in shipments to 35.8 million units in the September quarter, the lowest level in a decade, according to research firm Omdia. The market slump came despite the onset of the festive season, as high prices and cautious consumer spending curbed replacement demand.

Omdia principal analyst Sanyam Chaurasia attributed the shift to channel-driven growth, as online-led shipment expansion during the festive period slowed due to memory and component shortages, prompting prices to rise.

The monthly inventory build-up period, traditionally a critical window for online sales, saw weaker momentum. Fewer exclusive launches, limited affordable models, and reduced promotional differences diminished the online channel's usual festive advantage. Chinese smartphone brands suffered disproportionately, with their combined market share dropping to 68% in Q3 2026 from 75% in Q3 2025, while Samsung and Apple strengthened their positions through premium offerings, solid consumer demand, retail partnerships, and installment plans.

Samsung reclaimed the top spot for the first time since Q1 2024, shipping 6.7 million units in the September quarter, aided by a strong premium portfolio, exchange benefits, and longer financing terms. Apple entered the top five, overtaking Realme with 3.9 million units sold, driven by channel stocking for expected price hikes and sustained demand for iPhone 17 and 16 models. The late arrival of iPhone 18 Pro and Pro Max bolstered Apple's momentum with bank cashback, exchange bonuses, and no-cost financing schemes.

Vivo dropped to second place, marking the steepest decline among the top five brands in Q3 2026, following a 34% year-on-year decline due to repeat price hikes and limited entry-level models. Oppo and Xiaomi also experienced significant shipment declines due to rising prices, cautious retailer stocking, and less competitive RAM and storage configurations.

The market is anticipated to decline further in 2027, as structural challenges such as higher prices and longer device lifecycles put pressure on brands to revive replacement demand.