India’s smartphone market declined in Q2 2026 due to rising device prices and weaker consumer demand, while premium AI-powered smartphones continued to witness strong sales.
New Delhi: India’s smartphone market witnessed a slowdown in the second quarter (Q2) of 2026, as rising handset prices and cautious consumer spending weighed on overall shipments. Despite the decline in the broader market, demand for premium AI-powered smartphones remained resilient, driven by consumers seeking advanced features and better performance.
Industry analysts attribute the slowdown to increasing production costs, inflationary pressures, and the growing adoption of premium devices, which have pushed average smartphone prices higher. As a result, many budget-conscious buyers have postponed upgrades or opted for lower-priced alternatives.
However, the premium smartphone segment continued to perform strongly, with AI-enabled features such as intelligent photography, real-time language translation, on-device AI assistants, and enhanced productivity tools attracting consumers. Brands including Apple, Samsung, and other leading manufacturers have expanded their AI-focused offerings, contributing to steady demand in the high-end market.
Experts believe the Indian smartphone industry could regain momentum during the upcoming festive season, when major brands are expected to introduce new models, discounts, and exchange offers to boost sales.
While short-term demand remains under pressure, India continues to be one of the world’s largest smartphone markets, with manufacturers increasingly focusing on AI innovation, premium devices, and local production to drive long-term growth.
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