Chinese smartphone brands lose ground amid memory cost pressure, while Samsung and Apple gain market share in Q2 CY26
Vivo, realme, Xiaomi and OPPO recorded shipment declines ranging from 8.5 per cent to 14.2 per cent in India during the second quarter of 2026, with Chinese brands bearing the brunt of a weakening smartphone market. Samsung and Apple, in contrast, broadly maintained their shipment volumes and gained market share during the quarter.
Realme recorded the steepest shipment decline among the four brands at 14.2 per cent year-on-year, followed by Vivo at 13.9 per cent, Xiaomi at 10 per cent and OPPO at 8.5 per cent, according to IDC’s Worldwide Quarterly Mobile Phone Tracker.
India’s overall smartphone shipments declined 11.1 per cent year-on-year to 33.2 million units in Q2 CY26. Rising memory costs pushed up device prices and weighed particularly heavily on entry-level demand, a segment where Chinese brands have traditionally had a strong presence.
Vivo remained India’s largest smartphone brand with an 18.4 per cent market share despite the shipment decline. Samsung increased its share to 16.4 per cent from 14.5 per cent a year earlier, while OPPO held 13.8 per cent, Xiaomi 9.7 per cent and realme 9.3 per cent. Apple’s share increased to 8.5 per cent from 7.5 per cent.
Entry-Level Segment Plunges
Smartphones priced below USD 100 suffered the sharpest contraction during the quarter. Shipments in the segment plunged 74.3 per cent year-on-year, reducing its share of the Indian market to 4.5 per cent from 15.6 per cent a year earlier.
The USD 100- USD200 mass-budget segment remained the largest category, accounting for 46.8 per cent of the market, with shipments broadly stable. IDC said consumers priced out of entry-level devices are increasingly shifting towards higher price bands.
The shift was particularly visible in the USD 400- USD 600 mid-premium category, where shipments grew 60.3 per cent. The segment’s market share increased to 8.6 per cent from 4.8 per cent.
India’s average selling price (ASP) rose 14.4 per cent year-on-year to a record USD 315 in Q2. The increase came against a 7.9 per cent decline in first-half shipments to 64.2 million units, the lowest first-half volume in five years.
Despite the volume contraction, smartphone market value increased 1.7 per cent in Q2, indicating the impact of higher device prices on the overall market.
Samsung, Apple Gain Share
Samsung and Apple were the only two leading brands to keep shipments broadly flat year-on-year, according to IDC. Their relatively stronger presence in higher-priced categories has helped them gain share while brands with greater exposure to entry-level and mass-market devices have faced sharper volume pressure.
Apple continued to lead the market by value, with its share rising to 27 per cent from 22.2 per cent a year earlier.
The increase in smartphone prices is also limiting the scope for brands to rely on discounts to support demand. Aditya Rampal, senior research analyst, Devices Research, IDC Asia Pacific, said the 14.4 per cent increase in ASP marked a sharp reversal from the previous year, when early festive discounts and offers were used to build market momentum.
“Heading into the festive season, financing options will be key to keeping affordability within reach,” Rampal said, adding that product differentiation in the mid-premium segment would also be important to sustain demand.
Online Channel Loses Share
The slowdown has also altered the smartphone sales channel mix. Online shipments declined 19.8 per cent year-on-year, reducing the channel’s share to 41.9 per cent from 46.4 per cent.
Offline shipments fell 3.6 per cent, lifting their share to 58.1 per cent from 53.6 per cent. The shift indicates greater reliance on physical retail amid higher device prices and weaker consumer demand.
Market Faces Deeper H2 Contraction
IDC expects the pressure on India’s smartphone market to intensify in the second half of 2026, with shipments projected to decline by more than 15 per cent. Full-year shipments are expected to reach around 128-130 million units.
Higher memory and component costs are expected to leave brands with less room for festive price cuts. Financing schemes, exchange offers and other affordability-led initiatives are likely to become increasingly important in supporting demand.
“Demand hasn’t gone away, people are simply waiting longer to buy,” said Upasana Joshi, senior research manager, Devices Research, IDC Asia/Pacific. Joshi said Apple was also facing a supply-led squeeze, with iPhone shipments expected to decline by mid-single digits in 2026 from 14.3 million units in 2025, amid higher prices and limited festive discounts.
