Now decline after 2025- In the year 2025, the smartphone market was almost stable. A total of 152 million units were shipped that year, which was only 0.5% more than in 2024. But now in 2026 the situation is looking worse.
The main reason for this decline is:
- global chip shortage
- rupee volatility
- Rising prices of parts and components
Chip shortage had started increasing since the end of last year and now its direct impact is on production and supply.
Situation like ‘perfect storm’
According to Upasana Joshi, Senior Research Manager of IDC, India’s smartphone market is currently facing a ‘perfect storm’. That means many problems have arisen simultaneously.
- supply is low
- prices are rising
- Purchasing power of customers is weakening
It is estimated that the supply problem may continue till the first half of 2027. However, after that there is hope for improvement.
Who is affected the most?
According to the report, Android smartphones will be affected the most. At the same time, sales of Apple’s iPhone may remain relatively stable and slight growth may also be seen.
Phones priced below $200 (approximately ₹16,000-₹17,000), which account for more than 55% of total sales, will be hardest hit by the decline.
Growth may continue in the premium and mid-premium segments, but it will not be as fast as before.
prices are continuously increasing
Big companies in India like Samsung, Oppo, Vivo, Realme and Xiaomi have increased the prices of many models since November. Many brands have increased prices in February also and there is a possibility of further increase also.
The rising cost of components, especially the cost of memory and storage, is forcing companies to increase prices. Many companies have even reduced their sales targets by 20% and are now focusing on higher profits instead of selling more units.
- Impact on retail market
- According to All India Mobile Retailers Association, the market is currently facing a ‘triple threat’:
- continuous price rise
- lack of supply
- Delay in customer purchases
Retailers have to buy stock by investing more money, while the interest of customers is decreasing.
What next?
Although companies will try to increase sales through schemes like no-cost EMI and exchange offers, there will be more pressure especially on the cheap phone segment due to weak purchasing power.
If the situation remains like this, then 2026 may prove to be the most difficult year in recent years for the Indian smartphone market.
(Moneycontrol Exclusive)
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