India smartphone market falls 10% as AI‑driven memory price surge hits budget phones

India’s smartphone shipments declined 10% year‑on‑year in the April‑June quarter of 2026, the steepest June‑quarter drop in six years, according to Counterpoint Research. The slump is linked to record‑high prices for RAM and flash storage, which have risen sharply as AI data‑center builders demand high‑bandwidth memory (HBM). Chipmakers such as Samsung, SK Hynix and Micron are shifting production toward HBM, which offers higher margins, reducing the supply of standard memory for consumer devices and pushing handset prices up by roughly 15%.

The price pressure hit the budget segment hardest: about 60% of Indian phones are priced below ₹20,000 (≈US$210). In the sub‑₹15,000 mass‑market tier, shipments fell 45% YoY, while the overall market share of Chinese brands slipped to its lowest level since 2020. Premium brands, aided by financing schemes, fared better; the ultra‑premium segment (above ₹45,000) remained relatively resilient. Market shares in Q2 2026 showed Vivo leading with 18%, Samsung close behind at 17.6%, and Oppo, Xiaomi and Realme trailing. Analysts note that the average upgrade cycle has lengthened from about 3.5 to four years as consumers delay purchases amid higher prices.