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India smartphone prices jump 16% in H1 2026

By Sohail Khan 29 September 2026, 7:45 pm

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India smartphone prices jump 16% in first half of 2026; market seen shrinking double digits
Synopsis

Average smartphone selling prices in India rose by 16% year-over-year in the first half of 2026. OnePlus, however, managed to keep its price increase to just 8%, distinguishing itself from competitors. Entry-level devices saw an average price increase of 32%, resulting in a significant 65% drop in shipments. Meanwhile, premium smartphones priced above Rs 20,000 continued to grow, benefiting from trade-in programs.

smartphone-sale — India’s average mobile phone prices rose 16% as higher memory costs and a weaker rupee made imported components more expensive, Counterpoint Research said.

Average smartphone selling prices in India climbed 16% year-over-year in the first half of 2026, driven by a sharp rise in memory component costs and a depreciating rupee, according to market research firm Counterpoint Research.

The surge pushed the country's average smartphone selling price to a record USD 318 in the second quarter of 2026. The broader smartphone market is now projected to contract by double digits, though Chinese brand OnePlus remains a notable exception due to more modest price adjustments.

"Smartphone prices in India rose 16 per cent on average in the first half of 2026, but OnePlus kept its own increase to 8 per cent. The hikes came as memory costs climbed, pushing India's average smartphone selling price to a record USD 318 in the second quarter of 2026," the research firm said.

Although nearly 99% of mobile phones sold in India are assembled locally, manufacturers remain heavily reliant on imported parts, exposing them to currency fluctuations and global component shortages.

While most brands chose to pass soaring costs directly to consumers, OnePlus managed to keep its average price hike to just 8%.

"Its (OnePlus biggest single price increase was 12 per cent, compared with 113 per cent for the rest of the industry, so the gap held not just on average but at the extremes as well. The lower hikes also did not hurt growth," the firm said.

Also read: COEP Tech, JSW to invest over Rs 800 crore in battery R&D centre in Pune

The strategy helped OnePlus become the fastest-growing brand among the top five on online channels in the above-Rs 20,000 price bracket during Q2 2026.

"OnePlus shipments are forecast to grow 5 per cent YoY in the quarter, while the overall market is expected to shrink by double digits," the research firm said.

The company avoided aggressive price increases by procuring and securing component stock earlier in the year, locking in memory rates before supply shortages intensified.

"In a cost shock scenario like this, brands usually have to pick between two choices – hold prices and give up margin, or protect margin and give up volume. OnePlus's H1 numbers suggest it managed to avoid this, mostly because it secured components early and has a portfolio broad enough to spread the pressure instead of loading it onto one price band," Counterpoint Research, Research Director, Tarun Pathak said.

The pricing pressure on hardware makers is unlikely to abate anytime soon. Counterpoint estimates that memory costs will remain elevated through at least 2028, with currency pressures continuing to weigh heavily on local assembly margins.

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