Despite the subdued market performance, Apple, which maintained its smartphone prices this year, recorded the strongest sales growth between April and July,
Samsung Electronics’ decision to increase chipmaking service prices by up to 15 per cent for new orders puts the company in a favourable position in the face of declining smartphone sales in India, experts told businessline.
Smartphone sales went down for three consecutive weeks after Amazon Prime Day and Flipkart’s GOAT sale in July. Prices across entry-level smartphones have risen steadily over the past three months. Samsung recorded the sharpest price revisions, with select models becoming 3-31 per cent more expensive in July, as per All India Mobile Retailers Association (AIMRA). Amid these challenges, the company has increased its chipmaking prices in a move aimed at preventing customers from shifting to rival foundries. According to Faisal Kawoosa, Chief Analyst and Founder of Techarc, the move will give Samsung an upper hand in a worsening situation.
“Samsung will end up booking the hikes as they have their own memory arm. They will not have price increase for themselves. Moreover, Samsung has the highest resale value compared to any brand. It likely to become leaders again,” said Kawoosa.
Another industry source told businessline that the move is a result of the pricing pressure. As chipset prices rise, brands are increasingly relying on higher average selling prices (ASPs), which are expected to increase by around 15 per cent. These trends are likely to continue until the AI-driven demand cycle subsides or India commissions its upcoming semiconductor fabrication units, which are anticipated to become operational by mid-2027.
Relating to the sale and customer sentiment going down, Kawoosa said Techarc had warned in the beginning of 2026 that India is in a Bermuda triangle situation with no innovation for consumers to replace or upgrade phones, a worsening component and rising dollar issue. So the festive season is not going to be as exciting as it is usually expected.
“Rising device prices are making consumers increasingly value-conscious and more dependent on promotional offers. This trend has become more visible over the past few months, with sales seeing temporary spikes during major promotional events, followed by a sharp normalisation once these offers end,” said Prachir Singh, Senior Analyst, Counterpoint Research
Counterpoint Research recorded only two instances of smartphone sales spikes with positive year-on-year growth. The subsequent three-week decline suggests that promotional events are primarily advancing purchase decisions rather than generating sustained market demand. Promotional events are pulling purchases forward rather than creating sustained demand.
The impact of higher prices is extending beyond short-term sales trends and is increasingly influencing consumer upgrade cycles.
Despite the subdued market performance, Apple, which maintained its smartphone prices this year, recorded the strongest sales growth between April and July, with volumes rising 15 per cent year-on-year. Robust demand for the iPhone 17 series, combined with affordability-focused offers, contributed to this performance.
Meanwhile, OPPO posted 4 per cent annual growth, supported by healthy demand for its budget-oriented A and K series devices. Samsung also recorded 4 per cent year-on-year growth, benefiting from its enhanced focus on the mainline retail channel and aggressive promotional offers across its A and S series portfolios.
Overall, Counterpoint Research continues to expect the Indian smartphone market to contract by 13 per cent year-on-year in 2026. However, Tarun Pathak, Research Director at the firm, remains optimistic about an improvement in demand over the coming months, as brands step up promotional activities ahead of the festive season..
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