New Delhi, April 17 (IANS) India’s smartphone shipments declined 3 per cent year-on-year (YoY) in the January-March quarter of 2026, which is the weakest first-quarter performance in the past six years, a report said on Friday.

The decline was driven by a combination of rising supply-side cost pressures, price hikes by manufacturers and weak consumer demand, which impacted retail conversions despite a higher number of new launches, according to Counterpoint Research.

To offset rising component costs, nearly one-third of model launches were advanced to the first quarter, as companies sought to mitigate bill of materials (BOM) inflation, particularly due to surging memory prices and currency fluctuations.

“The market is facing a clear affordability squeeze, driven by sharp memory-led cost inflation and currency pressures that have forced price increases across key models,” said Senior Analyst Prachir Singh.

He added that with average price hikes exceeding Rs 1,500, the sub-Rs 15,000 segment has been hit the hardest due to its high price sensitivity.

Rising energy costs amid ongoing geopolitical tensions in the Middle East have further strained household budgets, prompting consumers to prioritise essential spending over discretionary purchases such as smartphones, Singh noted. As a result, upgrade cycles are lengthening and recovery in the mass segment is expected to remain gradual.

Among brands, Samsung secured the second position, supported by strong traction in its mass-market portfolio and a positive response to its latest flagship series, which saw robust pre-bookings.

Meanwhile, Apple continued to witness steady growth in the premium segment, with its shipment share reaching 9 per cent, aided by sustained demand for its latest iPhone lineup and attractive financing offers.

The report also noted that the premium segment remained relatively resilient, even as entry-level demand stayed weak.

On the outlook, Research Director Tarun Pathak has expected continued pressure on the market in the near term, with the April-June quarter likely to see a double-digit decline due to elevated component costs and subdued demand in lower price segments.

For the full year, the market is projected to decline by around 10 per cent YoY, as sustained inflation in key components — especially memory — continues to weigh on affordability and delay replacement cycles, according to Pathak.

–IANS

ag/na