Smartphone retailers reported a 30–40% decline in festive-season sales volumes as higher prices and reduced discounting weighed on consumer demand.
Smartphone sales in India have come under pressure during the festive season, with retailers reporting a 30–40% decline in sales volumes as compared with the previous year. The slowdown comes amid higher device prices, reduced discounts and cautious consumer spending.
According to the newspaper report dated October 27, retailers said the market was facing weaker demand despite the importance of the festive period, which typically drives purchases of smartphones and other consumer electronics.
Apple’s iPhone sales were also affected by the changing market environment. The report noted that Apple shipped a record 14.3 million iPhones in India in 2025, highlighting the brand’s growing presence in the country’s premium smartphone segment.
However, the broader smartphone market has experienced a decline in shipments. Overall smartphone shipments fell 11.1% year-on-year to 33.2 million units during the April–June period, according to figures cited in the report.
Smartphone shipments during the first half of 2026 stood at 64.2 million units, their lowest first-half level in five years. The figures point to pressure on the industry as consumers face higher prices and retailers have less room to offer substantial discounts.
Industry participants said manufacturers were increasingly cautious about discounting because of elevated costs and pressure on margins. While premium devices continue to attract buyers, higher average selling prices may be limiting purchases among price-sensitive customers.
Research firm IDC expects smartphone shipments to decline by more than 15% in the second half of 2026, according to the report. The projected decline suggests that the market could face further challenges despite the festive shopping period.
Retailers are also dealing with changes in consumer purchasing behaviour. Buyers are taking longer to make decisions, comparing prices across brands and waiting for attractive offers before upgrading their devices.
The outlook for the smartphone market will depend on affordability, pricing strategies, consumer demand and manufacturers’ ability to offer competitive products without putting additional pressure on margins.
