Why budget smartphones are struggling in India
What's the story
India's smartphone market witnessed a major slowdown in the April-June quarter, with a 10% year-on-year (YoY) decline. However, the impact was not uniform across all segments. The demand for budget smartphones (priced below ₹15,000) plummeted by 45%, while high-end devices remained relatively stable. This trend highlights how rising handset prices and financing options are influencing consumer behavior in one of the world's largest smartphone markets.
Market dynamics
Weak discretionary spending
Counterpoint Research attributes the sharp decline in the sub-₹15,000 segment to repeated price hikes, increased component costs, and weak discretionary spending.
These factors have led many consumers to postpone their device replacements.
"The market remained under pressure as both demand and supply were adversely affected," said Prachir Singh, Senior Research Analyst at Counterpoint.
Price surge
Average selling prices up by nearly 15%
Counterpoint's data shows that repeated price revisions have pushed average smartphone selling prices up by nearly 15% by the end of June quarter.
This is largely due to a nearly fourfold increase in smartphone memory prices since September 2025, which are expected to rise further in the coming months.
These rising costs are forcing manufacturers to either absorb or pass on these higher costs to consumers.
Resilience
Premium segment's resilience
Despite the same economic conditions, the premium segment has fared better due to easier financing options.
Over 50% of smartphones sold through India's mainline retail channels in the quarter were bought via equated monthly installments (EMIs) or financing from non-banking financial companies.
This has kept premium demand relatively resilient even as the broader market weakened.
Brand resilience
Apple's shipments fell for 1st time in 4 years
Apple's shipments in India fell 3% YoY during the April-June quarter, ending four consecutive years of June-quarter shipment growth.
However, Counterpoint attributes this decline mainly to inventory shortages across online and offline retail channels rather than weak demand.
The firm said consumer demand for Apple's latest iPhone lineup remained healthy despite supply constraints, explaining why its decline was much smaller than the overall market's 10% contraction.
Brand performance
Vivo retains top spot, Samsung sees growth
Vivo retained its position as India's largest smartphone brand despite lower shipments during the quarter.
Samsung was the only company among India's top five smartphone vendors to post YoY shipment growth, with a 2% increase driven by demand for its Galaxy A-series and flagship devices.
However, OPPO, Xiaomi, and Realme all recorded shipment declines due to affordability pressures affecting demand in their core mass-market portfolios.