India's smartphone market posted a 1.7 per cent year-on-year rise in market value during Q2 2026, even as total shipments fell 11 per cent to 33.2 million units, according to an IDC report released on Tuesday, 11 August 2026. The divergence reflects a structural shift in consumer behaviour, with buyers moving decisively toward higher-priced devices as a global memory chip shortage pushed entry-level handsets out of reach.

Key Developments

The average selling price (ASP) of smartphones in India climbed 14.4 per cent year-on-year to a record $315 in Q2 2026 — the highest ever recorded for the market. First-half shipments fell 7.9 per cent year-on-year to 64.2 million units, the lowest first-half volume in five years. The ongoing global memory chip shortage inflated component costs, squeezing affordability at the lower end of the market.

Premiumisation Drives the Market

The $400–$600 price band was the standout performer, with shipments surging 60.3 per cent year-on-year and market share nearly doubling to 8.6 per cent from 4.8 per cent a year earlier. The $600–$800 segment remained broadly flat, while the $800-plus category saw only a modest 5 per cent decline in shipments. The mass-budget $100–$200 band continued to anchor the market, accounting for 46.8 per cent of total shipments.

At the other extreme, the sub-$100 segment collapsed — shipments plunged 74.3 per cent year-on-year, with its market share shrinking to 4.5 per cent from 15.6 per cent a year earlier. Rising memory costs made ultra-budget devices economically unviable for many manufacturers, effectively eliminating the lowest price tier for millions of first-time buyers.

Brand Performance: Samsung and Apple Gain Share

Samsung expanded its market share to 16.4 per cent from 14.5 per cent, while Apple grew its share to 8.5 per cent from 7.5 per cent — both benefiting from their stronger positioning in the mid-to-premium segments that held up best during the downturn. The gains suggest that brand loyalty and ecosystem stickiness are providing a buffer in an otherwise contracting volume environment.

Offline Channels Outperform Online

The offline retail channel demonstrated relative resilience, with shipments declining only 3.6 per cent year-on-year and its market share rising to 58.1 per cent from 53.6 per cent. Online channels, by contrast, saw shipments fall 19.8 per cent, with share dropping to 41.9 per cent. The shift likely reflects consumers preferring in-store experience and EMI financing options when purchasing higher-value devices.

Outlook: Festive Season Could Be a Turning Point

IDC Senior Research Analyst Aditya Rampal noted that rising memory costs had pushed smartphone prices higher, and that financing options were likely to play an important role in sustaining affordability during the upcoming festive season. The IDC report pointed to stabilising memory prices, wider availability of EMI and financing schemes, and stronger festive demand in the mid-premium segment as factors that could support a market recovery in the second half of 2026.