The iPhone 17 is reportedly performing well in India, even as the overall smartphone market faces a sharp downturn. The recent data reveals that the Indian smartphone sector has recorded its lowest shipment figures in the past five years. The decline in shipments has been largely attributed to a memory shortage that has affected manufacturers’ ability to keep costs manageable, thereby impacting sales.

According to IDC’s Worldwide Quarterly Mobile Phone Tracker, smartphone shipments in India dropped by 11.1 per cent year on year, totalling 33.2 million units for the second quarter of 2026. The combined shipments for the first two quarters amounted to 64.2 million units, reflecting a decrease of 7.9 per cent, a situation not seen in the last five years.

IDG’s senior research manager, Upasana Joshi, stated that while demand has not diminished, consumers are opting to delay purchases longer than before. Those intending to upgrade are reportedly keen to act sooner rather than wait, in light of rising prices in the market.

Apple and Samsung Maintain Shipments Amid Market Contraction

The report highlights that while many brands struggled with reduced shipments, both Apple and Samsung managed to keep their numbers relatively stable. Apple faced supply constraints affecting its earlier models, including the iPhone 15, 16, and 17. Nevertheless, the iPhone 17 emerged as the most delivered device in both the first and second quarters of 2026.

Apple currently holds a market share of 8.5 per cent in India, ranking sixth among smartphone brands. However, there are indications that Apple may also experience reduced shipments in the near future, particularly concerning older models. Joshi mentioned that these devices are likely to become more expensive without the attractive discounts typically seen during the festive season and estimates that shipments could see a decline of mid-single digits by 2026.

Vivo continues to lead the Indian market, despite seeing a slight decrease in market share from 19 per cent to 18.4 per cent year on year. Samsung maintained a marginal growth in shipments and holds the second position with a market share of 16.4 per cent, an increase from 14.5 per cent. Oppo ranks third with a 13.8 per cent share, followed by Xiaomi at 9.7 per cent and Realme at 9.3 per cent.

Entry-Level Smartphones Face the Most Challenges

The bottom segment of the smartphone market has suffered the most, with shipments of devices priced under $100 (approximately Rs 9,500) plummeting by 74.3 per cent year on year during the second quarter of 2026. Consequently, this segment’s market share has declined from 15.6 per cent to 4.5 per cent, as maintaining profitability in this category has proven increasingly challenging.

In contrast, the $100-200 (approximately Rs 9,500 to Rs 19,000) segment emerged as the largest, sustaining a 46.8 per cent share of the market. Meanwhile, the $400-600 (approximately Rs 38,000 to Rs 57,000) price range saw substantial growth, rising 60.3 per cent year on year and increasing its share from 4.8 per cent to 8.6 per cent.

Additionally, sales channels have shifted, with online shipments experiencing a year-on-year decline of 19.8 per cent. This shift prompted a decrease in the online share from 46.4 per cent to 41.9 per cent, while offline shipments fell by 3.6 per cent but increased their share of total sales to 58.1 per cent from 53.6 per cent, as brands sought to manage pricing pressures through physical stores.

Future Outlook for Smartphone Shipments Remains Uncertain

Looking ahead, the outlook for smartphone brands may become more challenging in the latter half of 2026. Manufacturer inventories are expected to dwindle, compounded by ongoing memory shortages as the festive season approaches, limiting opportunities for discounting. IDC anticipates that shipments could decline by more than 15 per cent in this period, bringing total annual shipments down to approximately 128–130 million units.

Counterpoint Research has also reported a 10 per cent year-on-year drop in smartphone shipments in the most recent quarter. Globally, smartphone shipments have reportedly reached their lowest levels since 2013, indicating broader challenges faced by the industry.

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