Smartphone prices in India increased by an average 16% in the first half of 2026 as higher memory costs and a weaker rupee made components more expensive, according to Counterpoint Research. Pasted text
Mobile phone prices have risen sharply in India, with increasing DRAM and NAND memory costs emerging as a major pressure on smartphone manufacturers. The weaker rupee has added to the burden by making imported components more expensive for local manufacturers.
Counterpoint Research said India’s average smartphone selling price reached a record $318 in the second quarter of 2026. While industry prices increased by an average 16% during the first half, OnePlus limited its average increase to 8%.
The impact has been particularly severe in the affordable smartphone market. Phones priced below ₹10,000 recorded average price increases of around 32%, as memory accounts for a larger proportion of their manufacturing cost.
Shipments in the sub-₹10,000 segment consequently fell 65% year-on-year during H1 2026. The ₹10,000–₹15,000 segment, historically one of India’s largest smartphone categories, recorded a 20% decline.
In contrast, smartphones priced above ₹20,000 continued to grow, supported by higher launch prices, trade-in offers and no-cost EMI options that made premium devices more accessible to buyers.
Counterpoint attributed part of the memory-cost pressure to AI data centres consuming DRAM and NAND supply. Although around 99% of mobile phones sold in India are manufactured locally, imported components leave manufacturers exposed to currency movements and global component prices.
OnePlus took a different approach from much of the industry by securing components earlier in the year at lower memory prices. Counterpoint said the brand is forecast to record 5% year-on-year shipment growth, while the overall smartphone market is expected to decline by double digits.
Counterpoint Research Director Tarun Pathak said the company’s early component procurement and broader portfolio helped it manage the cost pressure without concentrating price increases in a single segment.
The research firm estimates that memory prices are unlikely to decline before 2028. Combined with continued currency-related import costs, this could keep pressure on smartphone pricing. Pasted text
