Smartphone – India Smartphone Shipments Record Sharpest June Quarter Decline in Six Years
Smartphone – India’s smartphone market experienced a significant slowdown during the April-June quarter, with shipments dropping sharply as rising device prices and cautious consumer spending weighed on sales across the country.
India’s smartphone industry registered a 10 per cent year-on-year decline in shipments during the April-June quarter, marking the steepest fall recorded for a June quarter in the past six years, according to a report released by Counterpoint Research on Friday. The slowdown reflects mounting pressure from higher production costs, weaker consumer demand and longer device replacement cycles despite promotional offers and financing programmes introduced by smartphone brands.
Rising Component Costs Push Smartphone Prices Higher
The report highlighted that the continued increase in memory and other component prices forced nearly every major smartphone manufacturer to revise prices multiple times during the quarter. By the end of the second quarter, the average selling price of smartphones had increased by around 15 per cent compared with earlier levels.
Senior analyst Prachir Singh explained that the surge in component expenses affected manufacturers across almost every price category. While brands attempted to maintain demand through discounts, exchange offers and easy financing schemes, higher retail prices ultimately discouraged many consumers from upgrading their devices.
Consumer Spending Remains Under Pressure
Apart from rising smartphone prices, broader economic conditions also played a major role in weakening demand. Inflation, macroeconomic uncertainty and reduced discretionary spending led many buyers to postpone smartphone purchases, extending the replacement cycle for existing devices.
The report noted that both supply-side challenges and cautious consumer behaviour combined to create a difficult operating environment for the smartphone industry throughout the quarter.
Budget Smartphone Segment Faces Biggest Setback
The entry-level smartphone category, covering devices priced below Rs 15,000, witnessed the sharpest decline. Shipments in this segment fell by 45 per cent compared with the same period last year, making it the worst-performing category during the quarter.
To respond to changing market conditions, several smartphone makers expanded their range of 4G devices in the affordable segment. Although 5G continues to represent the industry’s long-term growth opportunity, researchers believe 4G smartphones will remain important for price-sensitive consumers until component costs become more stable.
Premium Smartphones Continue to Show Resilience
Unlike the budget segment, premium smartphones priced above Rs 45,000 managed to perform comparatively better. The report attributed this resilience largely to the growing popularity of financing options, including easy monthly instalment plans that lower the initial purchase cost for consumers.
These flexible payment schemes have made premium devices more accessible even as overall smartphone prices continue to rise, helping brands maintain demand in the higher-end market.
Industry Outlook Remains Challenging
Counterpoint Research expects pressure on India’s smartphone market to continue through the remainder of the year. Research Director Tarun Pathak said elevated prices for memory and other essential components are likely to keep smartphone prices high in the coming months.
The report also noted that smartphone memory prices have increased nearly fourfold since September 2025 and could climb further, potentially reaching five times previous levels if current market conditions persist. As a result, Counterpoint Research forecasts that India’s smartphone shipments may decline by around 13 per cent year-on-year for the full year, reflecting continued challenges for manufacturers as well as consumers.