New Delhi, August 17 (IANS). India's smartphone market recorded a 10 percent year-on-year decline in the second quarter of 2026. During this time, consumers put off phone upgrades, while companies and retailers focused on reducing their existing stock. This information was given in the report released on Monday.
According to a report by technology research firm CyberMedia Research (CMR), this slowdown in the market has come due to cautious consumer spending, rising component and device costs, longer phone replacement periods and optimizing inventory across retail channels.
The decline was widespread in the low-cost segment. An annual decline of 88 percent was recorded in the affordable segment and 30 percent in the value-for-money segment.
In contrast, the premium segment (above Rs 25,000) grew by 54 per cent. In this, the super-premium segment (Rs 50,000 to Rs 1 lakh) was at the forefront, registering a tremendous growth of 72 percent. This was due to sustained demand and financing schemes like zero-cost EMI and trade-in.
“The 72 per cent year-on-year growth of the super-premium segment shows that financing arrangements like zero-cost EMI, trade-in offers and consumer credit are becoming the deciding factors in premium phone upgrades. AI features or camera hardware alone are no longer the deciding factors,” said Maneka Kumari, senior analyst at Cybermedia Research.
He said the affordable and value-for-money segments remained under pressure as price-sensitive consumers postponed phone upgrades.
The 2G feature phone segment grew by 5 percent year-on-year, while the 4G feature phone segment declined by 43 percent.
The company has estimated that India's smartphone market may decline by 10–12 percent in calendar year 2026. Affordable and value-for-money segments are likely to remain under pressure from cautious consumer sentiment, rising component costs and rising device prices.
“The sub-Rs 15,000 segment is expected to remain under pressure in the second half of 2026 due to rising component costs and higher device prices as consumers extend their phone replacement period,” said Amit Sharma, senior analyst at Cybermedia Research.
The premium and super-premium segments are expected to grow by more than 50 percent in the second half of 2026, he said. It will be supported by an AI-enabled experience, better camera performance and premium design.
He said this difference reflects a structural change in demand. Affordable prices will remain the cornerstone of the mass market, while differentiated and premium features, including new form factors like foldables, will dictate growth in the high-end segment.
—IANS
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