India smartphone market kicks off 2026 by losing $500 million, despite price hikes

Mint spoke with.The decline in value was relatively narrower at 6%, as companies partially offset losses by raising prices in February and March.India smartphone market was flat in 2025 with a 0.6% annual growth by volume totalling 152 million units.Worryingly for the industry, this is the first time in recent years that smartphones are witnessing a simultaneous decline in both value and volumes at the start of a calendar year. So far, brands had relied on no-interest monthly instalments to sustain sales of higher-value phones — a strategy that appears to have hit a roadblock, at least for now.The slowdown coincided with sweeping geopolitical tensions that cascaded into financial markets worldwide, pushing up energy prices and dampening consumer sentiment.

According to analysts at IDC India and Counterpoint, consumers are deferring purchases amid uncertainty.“High prices of necessary commodities such as cooking gas and fuel have led to a rise in the cost of transportation and basic necessities. This means that even though a smartphone today is almost an essential commodity, a new smartphone’s purchase will still go down the order of importance, at least until the market stabilizes.

In such a market, either brands or retailers will have to compromise on margins if they were to boost sales and keep the industry’s growth afloat,” said Navkendar Singh, associate vice-president at market research and consultancy firm, International Data Corp (IDC) India.On 7 April, Mint reported that each of India’s top smartphone brands increased phone prices by nearly 40% in many cases. The top five brands account for nearly two-thirds of the market, and despite price hikes, the slowdown is expected to impact them due to their broad market