New Delhi, India
Smartphone buyers in India are increasingly feeling the impact of rising prices. During the first half of 2026, the average selling price of mobile phones in the country increased by 16%. Higher memory component costs and the depreciation of the Indian rupee have been identified as major factors behind the increase.
According to market research firm Counterpoint Research, the weakening rupee has increased the cost of imported components used in smartphone manufacturing. This has put additional pressure on smartphone brands and local manufacturers. With production costs rising, companies have been forced to increase smartphone prices.
Smartphones Under ₹10,000 See the Sharpest Price Increase
The budget smartphone segment has been hit the hardest by the price increase. The average price of smartphones priced below ₹10,000 has increased by 32%.
At the same time, wholesale shipments in this segment recorded the steepest year-on-year decline of 65%.
This means budget-conscious consumers may find it increasingly difficult to purchase smartphones at the prices they were accustomed to. The significant increase in prices has also contributed to a noticeable decline in demand for devices in this category.
Sales of ₹10,000–₹15,000 Smartphones Also Decline
The ₹10,000–₹15,000 smartphone segment has also experienced a decline in sales. Annual shipments in this category fell by 20%.
According to the research, rising prices combined with weaker consumer demand could put further pressure on the overall smartphone industry.
Counterpoint Research has estimated that India’s overall smartphone market could record a double-digit decline in 2026.
Average Selling Price Reaches $318 in Q2
Between April and June 2026, the average selling price of smartphones in India reached a record $318.
The figure highlights the continued rise in average device prices in the Indian smartphone market.
In addition to rising memory component costs, the depreciation of the rupee has placed further pressure on manufacturers. Higher prices for imported components have increased production costs even for companies assembling and manufacturing smartphones locally.
The impact of higher prices has been particularly severe in the budget segment. A 32% increase in the average price of smartphones below ₹10,000, combined with a 65% decline in shipments, highlights the scale of the shift.
With the overall smartphone market potentially facing a double-digit decline during 2026, manufacturers are likely to face increasing pressure to balance higher production costs, smartphone prices and weakening consumer demand.
