Blitz Bureau
NEW DELHI: India’s smartphone shipments declined 3 per cent year-on-year (YoY) in the January-March quarter of 2026, which is the weakest first-quarter performance in the past six years, a report said on April 17. The decline was driven by a combination of rising supply-side cost pressures, price hikes by manufacturers and weak consumer demand, which impacted retail conversions despite a higher number of new launches, according to Counterpoint Research.
To offset rising component costs, nearly one-third of model launches were advanced to the first quarter, as companies sought to mitigate bill of materials (BOM) inflation, particularly due to surging memory prices and currency fluctuations.
“The market is facing a clear affordability squeeze, driven by sharp memory-led cost inflation and currency pressures that have forced price increases across key models,” said Senior Analyst Prachir Singh. He added that with average price hikes exceeding Rs 1,500, the sub-Rs 15,000 segment has been hit the hardest due to its high price sensitivity.
Rising energy costs amid ongoing geopolitical tensions in the Middle East have further strained household budgets, prompting consumers to prioritise essential spending over discretionary purchases such as smartphones, Singh noted. As a result, upgrade cycles are lengthening and recovery in the mass segment is expected to remain gradual.
