India’s Smartphone Market Slumps 10% in Q2 2026 as Consumers Delay Upgrades Amid Rising Costs; Premium Segment Surges 54%

· Free Press Journal

New Delhi: India’s smartphone market eased 10 per cent year‑on‑year in the second quarter of 2026 as consumers delayed upgrades and manufacturers and retailers worked down inventories, a report said on Monday.

The report from technology research firm CyberMedia Research (CMR) said the slowdown reflects cautious consumer spending, rising component and device costs, extended replacement cycles, and inventory optimisation across retail channels.

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The slowdown was broad‑based on lower price tiers, as the affordable segment eased 88 per cent and the value‑for‑money segment tempered 30 per cent year‑on‑year.

The premium segment (above Rs 25,000) grew 54 per cent, led by the super‑premium band (Rs 50,000–Rs 1 lakh), which surged 72 per cent on continued aspirational demand and financing offers such as zero‑cost EMIs and trade‑in schemes.

"The Super Premium segment's 72 per cent YoY growth points to financing structures — zero-cost EMI, trade-in offers, and consumer credit — becoming the deciding factor in premium upgrades, not just AI features or camera hardware," said Menka Kumari, Senior Analyst, CyberMedia Research (CMR).

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"Meanwhile, affordable and value-for-money segments remained under pressure as price-sensitive consumers delayed upgrades, resulting in a more polarized market,” Kumari added.

While the 2G feature phone segment grew 5 per cent YoY, the 4G feature phone segment declined 43 per cent YoY.

The firm projected a 10–12 per cent full-year decline for India’s smartphone market in CY2026, with affordable and value-for-money segments likely to remain under pressure due to cautious consumer sentiment, rising component costs, and increasing device prices.

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"Rising component costs and higher device prices are expected to keep the sub-Rs 15,000 segment under pressure through H2 2026, as consumers extend replacement cycles further,” said Amit Sharma, Senior Analyst, CyberMedia Research (CMR).

The premium and super-premium segments are expected to grow over 50 per cent in H2 2026, driven by AI-enabled experiences, stronger camera performance, and premium design, Sharma added.

“This divergence reflects a structural shift in demand: affordability will continue to anchor the mass market, while differentiation — including emerging form factors such as foldables — will define growth at the premium end,” he noted.

(Except for the headline, this article has not been edited by FPJ's editorial team and is auto-generated from an agency feed.)

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