Chinese Smartphone Brands Lose Ground as India's Budget Phone Market Records Sharpest Six-Year Sales Decline Nationwide

19 July, 2026
Chinese Smartphone Brands Lose Ground as India's Budget Phone Market Records Sharpest Six-Year Sales Decline Nationwide

Winning Bizness Desk

Mumbai.Chinese smartphone brands suffered a major setback in India during the April-June quarter, with their combined market share slipping to a six-year low of 18% as higher handset prices weakened demand. The country's smartphone market also posted its steepest June-quarter decline in six years, reflecting growing pressure on price-sensitive buyers.

According to Counterpoint Research, overall smartphone sales fell 10% year-on-year during the quarter. The biggest hit came in the sub-Rs 15,000 segment, where sales plunged 45% after manufacturers increased prices by around 15% to offset soaring memory chip costs. The affordable segment has traditionally been the backbone of most Chinese smartphone makers operating in India.

Market Slowdown Hits Budget Segment Hard

The report said rising component costs have changed buying patterns across the market.

Key highlights:

  • Overall smartphone sales dropped 10% year-on-year.
  • Phones priced below Rs 15,000 recorded a steep 45% decline.
  • Average smartphone prices increased by nearly 15%.
  • The June quarter witnessed the sharpest slowdown in six years.

Counterpoint said memory chip prices, a key component used for storing data, have risen almost four times since September 2025. The research firm expects prices to increase up to fivefold in the coming months, raising concerns that smartphones could become even more expensive.

Higher Costs Threaten Annual Sales Outlook

The sustained rise in memory chip prices is expected to keep pressure on both manufacturers and consumers. With production costs continuing to climb, the research firm estimates that India's overall smartphone sales could decline by as much as 13% this year if the current pricing trend persists.

Chinese brands such as Oppo, Vivo, Xiaomi, Realme, OnePlus, iQOO and Poco, whose business largely depends on affordable smartphones, were the worst affected. Their combined market share has now fallen to its lowest level since 2020 as demand for low-cost devices weakened.

Samsung, Nothing And Pixel Gain Momentum

While Chinese brands struggled, Samsung emerged as the only company among India's top five smartphone brands to record growth, with sales rising 2% on the back of strong demand for its Galaxy A and Galaxy S series. Premium-focused brands also strengthened their presence despite the broader market slowdown.

Performance snapshot:

  • Samsung sales rose 2%.
  • Nothing posted the fastest growth at 105%.
  • Google Pixel recorded a 68% jump in sales.
  • Pixel's gains were driven by aggressive marketing and stable pricing.

The latest market trends suggest that consumers are increasingly shifting towards established premium brands, while rising prices continue to squeeze demand for entry-level smartphones. Unless component costs ease in the coming months, affordability is likely to remain the biggest challenge for India's smartphone market.