India smartphone market faces price hikes and shifting 4G demand

The Indian smartphone market is experiencing a significant shift driven by rising component costs and a global memory chip shortage. According to Counterpoint Research, average smartphone prices in India rose by 16% in the first half of 2026, largely due to escalating DRAM and NAND memory costs fueled by demand for AI data center hardware. A weaker rupee has further increased the cost of imported components.

This price surge has disproportionately affected the budget segment. Devices priced below ₹10,000 saw average price increases of approximately 32%, leading to a 65% year-over-year collapse in shipments for that category. Shipments in the ₹10,000–15,000 range also declined by about 20%. Conversely, the premium segment (above ₹20,000) has continued to grow, supported by higher launch prices and increased use of financing.

As the price gap between 4G and 5G devices widens, 4G smartphone shipments are expected to see a modest rebound. Counterpoint Research forecasts that 4G shipments will grow by 3% year-over-year in 2026, accounting for 13% of the total market, up from 11% in 2025. This trend indicates that while premium buyers continue to adopt 5G, the price-sensitive segment remains reliant on 4G hardware to manage costs.