India’s smartphone shipments fell 13% year on year (YoY) to 33.9 million units in 2Q26, as rising memory costs triggered successive handset price increases and reduced affordability for mass-market consumers, according to Omdia’s latest research. Delayed upgrades ahead of festive-season offers, alongside rupee depreciation, inflation and weak summer retail footfall, further weighed on demand. Despite an active launch calendar, vendors remained cautious about channel replenishment due to slower sell-out and rising inventory costs.
2Q26 vendor performance:
- vivo retained its leadership with 6.3 million shipments despite a double-digit decline, as price hikes weighed on mass-market demand. It defended its position by streamlining its entry-level portfolio around hero models such as the Y11 5G and Y21 5G, while lowering the entry point for its V-series with the V70 FE.
- Samsung followed closely with 5.9 million units, delivering the strongest resilience among leading vendors. The Galaxy A07 and Galaxy A17 drove volumes, while Galaxy Forever, exchange, buyback and distributor financing programmes supported the flagship Galaxy S26 series and strengthened channel confidence.
- OPPO ranked third with 4.6 million units, as multiple price revisions across its running portfolio weighed on volumes. It nonetheless continued to strengthen its mid-range and flagship offerings through the F33 series, an expanded Reno 15 lineup and the broader Find X9 family.
- Xiaomi placed fourth with 4.5 million shipments, driven by the Xiaomi 15A and 15C, while 4G models including the Redmi A7 4G and Redmi A7 Pro 4G continued to address entry-level demand. It also revived the Leica-backed T-series to strengthen its premium upgrade path.
- Apple rounded out the top five with 3.5 million units, benefiting from channel inventory build-up for the base iPhone 17 model ahead of anticipated price increases and expectations that the base iPhone 18 model would not launch this year. Financing, exchange and cashback programmes further supported premium sell-out.
“Vendors increasingly simplified and repositioned their portfolios in 2Q26 to improve profitability, sharpen product differentiation and enhance channel efficiency,” said Sanyam Chaurasia, Principal Analyst at Omdia. “Brands became more selective at the entry level – prioritizing hero models, extending product lifecycles and staggering launches to better align inventory with sell-out – while redesigning premium portfolios around clearer upgrade paths. As higher device prices increased inventory values, retailers increasingly concentrated their investment on brands offering stronger sell-out visibility and financing support. Samsung and Apple were better positioned to capture a larger share of channel inventory as retailers prioritized brands with lower inventory risk and stronger premium demand.”
“Omdia continues to expect a double-digit decline in India’s smartphone market in 2026, with consumer demand remaining constrained by macroeconomic pressures and elevated device prices. Persistent inflation, rupee depreciation and higher living costs are expected to weigh on discretionary spending, while below-normal rainfall could further soften rural incomes and festive season demand. At the same time, elevated memory costs are likely to keep smartphone prices high through the remainder of 2026, with broader smartphone price normalization unlikely before the first half of 2027.
“Against this backdrop, vendors should maintain pricing discipline by aligning product pricing with rising component costs while preserving consumer affordability through channel-led promotional initiatives. Rather than relying on deeper discounts, brands should strengthen perceived value through financing, exchange programs, cashback offers and value-added service bundles. As higher device prices increase consumer’s preference for financing, trade-ins and bundled offers, vendors should deepen partnerships with large-format retailers while continuing to support general trade through disciplined inventory planning and stronger retail execution,” concluded Chaurasia.
