India Smartphone Shipments Fall 26% as Festive Prices Bite

India's smartphone shipments dropped 26% year-on-year to 35.8 million units in the quarter ended September 2026, reaching the industry's lowest level in a decade despite the beginning of festive shopping, according to Omdia figures reported by The Economic Times on October 19. Higher handset prices and restrained consumer spending weighed on demand for replacement phones.

The research firm's assessment points to a shift in how brands are competing for Indian buyers: the festive-season push through online channels is losing strength, while retail relationships, exchange offers and financing are becoming more important. These figures measure shipments, rather than completed purchases by consumers.

Higher component costs weaken the festive push

Sanyam Chaurasia, principal analyst at Omdia, attributed the price pressure to shortages of memory and other components. He said the market was moving away from online-led festive shipment expansion towards more selective growth through distribution and retail channels.

September usually serves as a key stocking month before major online shopping events. This time, shipment momentum weakened as fewer exclusive launches, a narrower selection of affordable models and smaller differences in promotional offers eroded online retailers' traditional festive advantage, Chaurasia said.

Chinese smartphone brands were particularly exposed to the online slowdown. Their combined share of the Indian market fell to 68% in the third quarter of 2026, from 75% in the corresponding quarter of 2025, according to Omdia.

Samsung retakes the lead; Apple enters the top five

Samsung shipped 6.7 million smartphones during the September quarter, returning to first place for the first time since the opening quarter of 2024. Omdia attributed its performance to its premium handset range, trade-in benefits and financing with longer repayment periods.

Apple shipped 3.9 million units and moved into the top five, displacing Realme. Its shipments benefited from distributors and retailers building stocks ahead of expected price increases, alongside continuing demand for the standard iPhone 17 and iPhone 16.

The late-quarter introduction of the iPhone 18 Pro and Pro Max added momentum, the research firm said. Bank cashback, exchange incentives and flexible no-cost financing also supported Apple's performance. Omdia linked both Apple and Samsung's stronger market positions to premium products, consumer demand, established retail partnerships and organised upgrade programmes.

Vivo's decline highlights pressure on affordable models

Vivo dropped to second place after shipments fell 34% year-on-year—the steepest decline among the quarter's top five brands. Omdia said repeated price increases and limited availability of entry-level models had weakened its competitiveness.

Oppo and Xiaomi also recorded substantial shipment declines. The research firm linked Oppo's performance to higher prices and cautious retailer stocking, while weaker RAM and storage configurations weighed on Xiaomi.

Omdia expects pricing pressure into 2027

Chaurasia expects India's smartphone market to contract further in 2027 after a difficult 2026. He identified higher prices and longer intervals between device replacements as persistent challenges for brands trying to persuade consumers to upgrade.

Pricing pressure is likely to continue through at least the first half of 2027, in his assessment, making the appeal of the device experience increasingly important. That is a forecast, not an observed outcome.