Smartphone prices in India have reportedly surged by 16 per cent during the first half of 2026, significantly impacting consumers’ purchasing decisions. This increase has been attributed to a combination of factors, including challenges in memory supply and the depreciation of the Indian rupee, which has made the cost of importing essential components more expensive. The average selling price of smartphones has now reached $318, according to research conducted by Counterpoint.

The ongoing memory crisis has severely affected the availability of consumer-friendly prices, leading to increased expenses for manufacturers. As a result, brands have transferred these costs to consumers, making smartphones less accessible to budget-conscious buyers. The report highlights that entry-level smartphones priced below Rs 10,000 have faced the most significant price hikes, averaging an increase of 32 per cent.

Declining Shipments in Entry-Level Segment

The rise in smartphone prices has led to a substantial decline in shipments, particularly for entry-level models. Data suggests that shipments of these affordable devices have plummeted by a staggering 65 per cent year-on-year in the first half of 2026. This drop underscores how price sensitivity is affecting lower-income segments of the market.

Additionally, models priced between Rs 10,000 and Rs 15,000, which historically performed well, have seen a decline in shipments by around 20 per cent. Consumers are increasingly hesitant to purchase devices in these ranges due to the sharp increases in price, which limits affordability and reduces demand. In contrast, higher-end smartphones priced above Rs 20,000 have experienced growth in shipments, attributed to attractive trade-in offers and financing options such as no-cost EMIs.

This trend of declining entry-level shipments reflects a significant shift in consumer preferences as financial pressures mount. Individuals looking for budget-friendly options are finding it increasingly challenging to afford new smartphones, potentially altering the market landscape in the coming months.

Variations in Brand Pricing Strategies

According to the research, OnePlus’s maximum single price increase has been 12 per cent, significantly lower than many of its competitors. This disparity in pricing strategies could have long-term implications for brand equity and consumer choice as the market continues to evolve amidst economic pressure.

Counterpoint projects that this trend of rising prices and differing brand responses will likely persist into the third quarter of 2026. As the smartphone industry faces ongoing challenges, consumers and manufacturers will need to closely monitor the situation in order to navigate this shifting landscape effectively.

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