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Smartphone Prices Soar 16% in 6 Months; Budget Phone Sales Plummet 65%.
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CNBC Awaaz•29-09-2026, 20:51
Smartphone Prices Soar 16% in 6 Months; Budget Phone Sales Plummet 65%.
- •The average price of smartphones increased by 16% in the first 6 months of 2026.
- •Rising memory component prices (DRAM and NAND) and a weakening rupee are key factors driving the cost increase.
- •Sales of phones cheaper than ₹10,000 plummeted by 65%, while their prices rose by approximately 32%.
- •Shipments in the ₹10,000 to ₹15,000 segment also saw a decrease of about 20%.
- •Demand for smartphones priced above ₹20,000 remains strong, supported by trade-in offers and no-cost EMIs.
Key Questions Answered
The average price of smartphones in India increased by 16% from January to June 2026 due to rising prices of memory components like DRAM and NAND, driven by high demand from AI data centers, along with a weakening rupee that increased the cost of imported components.
Phones costing less than 10,000 rupees saw an average price increase of about 32%, while their shipments experienced a sharp year-on-year decline of 65% in the first half of 2026 as low-budget customers faced severe purchasing power constraints.
While budget segments suffered steep declines, the smartphone segment above 20,000 rupees continued to grow, supported by trade-in offers, no-cost EMIs, and higher launch prices for new devices.
