Why Your Next Phone Costs More
Phones in India are getting more expensive, and fewer people are buying them. New estimates from analyst firms show the market had its weakest July-to-September quarter in about ten years.
What the numbers say
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Omdia says India’s phone shipments fell 26% to 35.8 million in the third quarter of 2026. That is the lowest for this quarter since 2016.
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Counterpoint Research counts differently and puts the fall at 20%.
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Phones priced under ₹20,000 fell the most, down 47%.
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Worldwide, shipments dropped 20% to 254.7 million phones.
These are early estimates, so the final numbers may change.
Why is memory so costly?
Every phone needs two kinds of memory: DRAM, which helps apps run smoothly, and NAND, which stores your photos and files. Chip makers are now putting more of their output into higher-profit AI and data-centre chips. That leaves less for phones, so phone brands are competing for supply with some of the biggest tech companies in the world.
What phone makers can do
Brands have only a few choices, and each one has a price.
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Raise prices. Counterpoint reported earlier that mid-range and premium phones went up by about 10-15%. But buyers resist paying more for a phone that feels much like last year’s.
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Absorb the cost. This hurts profits, especially for brands that sell cheap phones with thin margins.
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Sell fewer phones. This is what is happening now, mostly at the low end.
Cheap phones suffer most because memory is a bigger part of their total cost. Counterpoint said the cost of making low-end phones had already risen 20-30% earlier in the year.
Who is doing well?
Apple and Samsung earned about 69% of all phone revenue in the quarter. Their costlier phones can handle the price rise better. Xiaomi, OPPO and Vivo are under pressure because they depend on budget buyers.
What it means for festive-season buyers
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Expect high prices on new launches.
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Check the final price after bank offers and exchange deals.
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Pick the RAM and storage you really need.
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Look at older models, which can be better value.
What happens next?
Omdia expects India’s phone sales to dip slightly again in 2027, so do not wait for prices to fall soon.
