New Delhi, Oct 21:
India’s smartphone shipments declined 26 per cent year-on-year to 35.8 million units in the July-September quarter of 2026, marking the lowest third-quarter shipment volume since 2016, according to a report by market research firm Omdia. The sharp contraction came despite the beginning of the festive season, as rising handset prices, cautious consumer spending and weaker replacement demand weighed on the market.
The slowdown reflects growing pressure on manufacturers as consumers delay upgrading their existing devices amid higher prices. Smartphone companies have also adopted more cautious inventory strategies, while shipments through online-focused channels weakened. The later timing of Diwali further affected quarterly volumes, as retailers shifted a significant portion of their festive inventory build-up from September to October.
Samsung regained the top position in the Indian smartphone market for the first time since the first quarter of 2024, shipping 6.7 million units during the quarter. Demand for its Galaxy A07, A17 and A27 models supported volumes, while the Galaxy S26 series, foldable devices and S26 FE strengthened its premium portfolio. Cashback offers, exchange benefits and longer-tenure financing schemes also encouraged consumers to upgrade their devices.
Vivo slipped to second place, with shipments falling 34 per cent year-on-year to 6.4 million units, the sharpest decline among the top five brands. Repeated price increases, disruptions in inventory planning and limited supplies in the entry-level segment affected its performance. OPPO ranked third with shipments of 4.9 million units, down 24 per cent, while Xiaomi stood fourth with 4.7 million units, a decline of 28 per cent.
Apple rounded out the top five, shipping 3.9 million units during the quarter. Dealer stocking ahead of anticipated price increases and demand for the iPhone 17 and iPhone 16 models supported shipments. Cashback offers, exchange bonuses and no-cost equated monthly instalment schemes also helped sustain demand, while the newer premium models strengthened the company’s position in the higher-priced segment.
The decline in shipments highlights a broader shift in India’s smartphone market, where higher component costs are forcing manufacturers to reconsider pricing and product configurations. The rising cost of devices has weakened the traditional appeal of affordable smartphones, particularly among price-sensitive buyers. Chinese smartphone makers were particularly affected, with their combined market share falling to around 68 per cent in the third quarter from 75 per cent a year earlier.
“India’s smartphone market is shifting from online-led shipment expansion during the festive period to more selective, channel-driven growth, challenging vendors’ traditional volume strategies,” said Sanyam Chaurasia, principal analyst at Omdia. He noted that fewer online-exclusive launches, a limited number of affordable models and narrowing promotional differences had reduced the online channel’s traditional advantage during the festive season.
Omdia expects India’s smartphone market to contract by a further low-single-digit percentage in 2027 following a difficult 2026. Manufacturers are likely to face continued pricing pressure and longer device replacement cycles, making it harder to sustain shipment growth through routine upgrades. The report points to more compelling artificial intelligence features, stronger retail partnerships, financing options and trade-in programmes as possible ways to encourage consumers to purchase new devices.