Memory prices force drop in smartphone shipments in India in June quarter

New Delhi: A survey released on Friday stated that India's smartphone shipments decreased 10% (year on year) during the April-June quarter, the most for a June quarter in six years.

The decline was mainly driven by record-high memory prices, which increased smartphone prices across almost all segments, weakening consumer demand and extending replacement cycles, despite promotions and financing initiatives, according to Counterpoint Research, IANS reported.

India’s smartphone market remained under pressure during the quarter, as both demand and supply were adversely affected.

“On the supply side, persistent increases in memory and other component costs prompted almost every major OEM to implement multiple rounds of price hikes, resulting in an average smartphone price hike of around 15 per cent by the end of the second quarter,” said senior analyst Prachir Singh.

At the same time, macroeconomic headwinds, inflationary pressures and weak discretionary spending weighed on replacement demand.

The mass-market segment (sub-Rs 15,000) was the hardest hit, with its shipments declining 45 per cent YoY.

In response, many OEMs expanded their 4G portfolios in the mass-market segment to better address changing market conditions. While 5G remains the long-term growth driver, 4G will continue to play a critical role in serving value-conscious consumers until component costs stabilise, said the analyst.

Meanwhile, the ultra-premium segment (above Rs 45,000) remained relatively resilient, supported by the growing adoption of financing options.

These financing schemes reduced the upfront cost of premium smartphones, making them more accessible to consumers despite the broader pricing pressures.

“We expect India’s smartphone market to remain under pressure through the rest of the year, as elevated memory and component costs continue to keep device prices high,” said Research Director Tarun Pathak.

Smartphone memory prices have increased nearly 4x since September 2025 and are expected to rise further, potentially reaching 5x in the coming months.

“As a result, we expect the market to decline by 13 per cent YoY for the full year,” he noted.