The Indian smartphone market is currently facing severe setbacks. Smartphone sales in the July-September quarter of 2026 fell by 20 percent compared to the previous year. This is the first time in the last ten years that sales have fallen to such a low. At the same time, Samsung has regained the top spot after nine quarters. These details have been revealed in a recent report released by Counterpoint Research.

The main reason for this decline is the record-high memory chip prices. The increase in chip prices has increased the manufacturing cost of smartphones. As a result, companies have had to increase the prices of phones. Even as the festive season is approaching, consumers are reluctant to buy due to the increased prices. If the situation continues, Counterpoint Research Director Tarun Pathak estimated that the smartphone market is likely to decline by about 13 percent for the full year of 2026.

The impact of the price increase has been particularly severe on the budget segment. Sales of smartphones priced below Rs 20,000 have fallen by 47 percent. Analysts believe that the majority of consumers are postponing the purchase of new phones, mainly due to the weakening of the market below Rs 15,000.

There have been key changes in market share. Samsung has regained the top spot with a market share of 17 percent. The strategies adopted in online and offline markets along with the sales of Galaxy 'A' series phones have contributed to this. Samsung is the only company to register growth among the top-5 brands. Vivo (16%) and Oppo (12%) are in the next positions. Xiaomi and Apple have a share of 8 percent each. On the other hand, the combined share of Chinese brands has decreased due to price pressure. In the same vein, domestic brand 'Ai+' has emerged as the fastest growing company with a growth of 306 percent in sales.