Smartphone prices in India rose sharply in the first half of 2026. The average selling price increased 16% year on year to reach 318 dollars. The steepest rise was seen in budget phones under ₹10,000 where costs jumped 32%. This led to a 65% fall in shipments. The ₹10,000–₹15,000 segment also dropped 20% compared to last year.
Premium smartphones above ₹20,000 continued to grow. Buyers in this category were supported by trade‑in offers and easy financing schemes such as no‑cost EMIs. OnePlus managed to limit its price increase to 8% on average and a maximum of 12%. This was possible because the company stocked components early and offered a wide portfolio. As a result OnePlus grew even as the overall market contracted.
The rise in prices was driven by higher memory costs due to demand from artificial intelligence data centres. A weaker rupee also made imported components more expensive. Although almost all phones are assembled locally in India the industry still depends heavily on imported parts.
The overall market is expected to shrink in double digits this year. Entry‑level buyers are facing affordability challenges while premium buyers continue to benefit from financing schemes.
