New Delhi: India’s smartphone shipments declined 10% year-on-year in the April–June quarter as rising memory-chip costs increased handset prices and weakened demand, particularly in the country’s price-sensitive entry-level segment.
According to Industry reports, this was the Indian smartphone market’s steepest June-quarter decline in six years. The contraction was considerably higher than the 2% fall recorded in China during the same period.
The disruption is linked to increasing demand for high-bandwidth memory used in artificial intelligence accelerators and data centres. Major manufacturers, including Samsung, SK Hynix and Micron, have been directing more production capacity towards these higher-margin components. The shift has reduced the availability and increased the cost of standard RAM and storage chips used in smartphones, laptops and other consumer-electronics products.
India has experienced a greater impact because approximately 60% of its smartphone market is concentrated in the sub-₹20,000 category, where manufacturers have limited capacity to absorb higher component costs. Shipments in the sub-₹15,000 segment declined 45% from the corresponding period last year.
Smartphone prices in India have reportedly increased between 4% and 68%, depending on the model. Consumers are responding by postponing upgrades, purchasing more expensive devices through financing arrangements or turning to the second-hand market. Average replacement cycles are expected to increase from approximately three-and-a-half years to four years.
Samsung was the only major smartphone manufacturer to register shipment growth during the quarter, with its volumes increasing 2% year-on-year. Apple’s shipments fell 3%, although the decline was primarily attributed to supply constraints and limited inventory.
The shortage has affected Chinese brands more significantly because of their greater dependence on entry-level and mid-range devices. Their combined Indian market share dropped to its lowest level for a second calendar quarter since 2020.
India’s smartphone shipments is expected to record a double-digit decline in the second quarter. The memory shortages and elevated handset prices could continue until at least the end of 2027, although the pace of price increases may moderate. A weaker rupee has added to the pressure by making imported components more expensive.
