Smartphone Market Faces Decline: Price Hikes, Longer Upgrade Cycles Hit Sales

• India's smartphone market is projected to decline in 2026, with demand stagnant in 2025, primarily due to rising prices of new and old models.
• The market has been stuck at around 152 million units for four consecutive years, as consumers use phones longer and the refurbished market grows.
• Despite sluggish domestic sales, smartphone exports from India surged by 47% in 2025 to $30 billion, with Apple's iPhone exports contributing over $22 billion.
• The December quarter of 2025 saw an 8-10% year-on-year decline in shipments, indicating a structural slowdown rather than just seasonal weakness.
• Analysts predict a challenging 2026, with memory chip price increases particularly impacting phones under ₹15,000, while companies adjust strategies through price hikes, reduced offers, or margin cuts.

Why It Matters: Rising prices and longer upgrade cycles are causing a structural slowdown in India's smartphone market.