India Smartphone Shipments Ease 10% in Q2 2026

In contrast, 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).

“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 year-on-year, the 4G feature phone segment declined 43 per cent year-on-year.

The firm projected a 10–12 per cent full-year decline for India’s smartphone market in calendar year 2026, with affordable and value-for-money segments likely to remain under pressure due to cautious consumer sentiment, rising component costs, and increasing device prices.

“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 the second half of 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.