Chinese smartphone manufacturers are losing their grip on the Indian market as soaring memory-chip prices make affordable smartphones more expensive to produce. The rising cost of components has forced several major brands to reduce their budget-phone offerings, creating an opportunity for Indian manufacturers to attract price-conscious buyers.
According to market research firms Omdia and Counterpoint Research, Chinese brands accounted for approximately 67–68% of India’s smartphone market in the July–September quarter of 2026, marking their weakest share in several years.
Chinese Brands’ Market Share Falls to an Eight-Year Low
Omdia estimates that Chinese smartphone brands held 68% of India’s smartphone market in the September quarter, down from 71% in the previous quarter and 75% a year earlier.
Counterpoint Research puts their combined share at 67%, the lowest since the first quarter of 2019.
Brands such as Vivo, Oppo and Xiaomi have traditionally relied on affordable smartphones to attract millions of Indian consumers. However, rising manufacturing costs are making it increasingly difficult to offer competitive prices without compromising on specifications or profitability.
Several manufacturers have responded by reducing the number of budget models they sell and adjusting hardware specifications to manage expenses.
Why Are Memory Chip Prices Rising?
Memory components, including RAM and storage chips, have become significantly more expensive amid a global supply crunch. Growing demand from artificial intelligence infrastructure and data centres has contributed to pressure on memory supplies, affecting the cost of manufacturing smartphones and other electronic devices.
Budget smartphones are particularly vulnerable because manufacturers operate with relatively thin margins and consumers in this segment are highly sensitive to price increases.
As component costs rise, brands face difficult choices: increase retail prices, reduce specifications or withdraw certain models from the market.
These pressures are also affecting overall demand. India’s smartphone shipments fell to 35.8 million units in the July–September quarter, according to Omdia, representing a substantial year-on-year decline. Counterpoint Research also reported a sharp contraction, although its estimate of the decline differed.
Indian Smartphone Brands See an Opportunity
The slowdown among Chinese manufacturers is opening space for domestic brands such as Lava and Ai+.
Counterpoint data indicates that the combined market share of Indian smartphone brands increased from 2% a year earlier to 7% in the September quarter. Lava and Ai+ reportedly accounted for nearly 95% of the contribution from Indian brands.
These companies are attempting to attract buyers with affordable devices and pricing strategies suited to India’s price-sensitive market. Other homegrown companies are also exploring opportunities in the budget smartphone segment.
However, sustaining this growth will depend on more than competitive pricing. Indian manufacturers must also deliver reliable hardware, software support, after-sales service and consistent product availability.
What This Means for Smartphone Buyers
Consumers may face fewer choices in the entry-level segment, higher prices and reduced discounts as manufacturers manage rising component costs. Buyers may also find that newer phones offer different specifications at price points previously associated with better hardware.
Chinese brands remain major players in India, but their dominance is being challenged by changing market economics. Whether Indian brands can turn their recent gains into lasting market share will depend on their ability to compete on price, quality and customer experience.
Summary: Chinese smartphone brands’ combined share of India’s market fell to approximately 67–68% in July–September 2026 as rising memory-chip costs put pressure on affordable devices. Indian brands Lava and Ai+ are gaining ground, with domestic brands’ combined share reaching 7%. Higher production costs and weaker demand could reshape smartphone prices, specifications and competition in India.
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