Samsung captures 19 per cent market share in a weak quarter, while shipments across India fall 26 per cent to 35.8 million units, Omdia says
India’s smartphone market contracted 26 per cent year-on-year to 35.8 million units in the July-September quarter of 2026, with Samsung reclaiming the top position and Vivo recording the steepest decline among the five largest vendors, according to market research firm Omdia. Rising device prices, cautious consumer spending and changes in festive inventory planning weighed on shipments, making it the weakest third quarter for the market since 2016.
The slowdown was also evident during the Navratri shopping period. According to Counterpoint Research, online smartphone unit sales declined 16 per cent year-on-year during Navratri, while the All India Mobile Retailers Association (AIMRA) estimated that sales volumes at physical retail stores fell nearly 20 per cent over the same period.
Despite the decline in units sold, smartphone sales value across India remained almost flat, AIMRA said, suggesting that higher prices helped offset the reduction in volumes. Gujarat was an exception, recording 15 per cent growth in smartphone sales volumes.
Industry executives estimated that prices of memory-related components had risen 15-40 per cent compared with levels around last Diwali, reflecting a broader increase in memory-chip costs. Higher input costs have added to pricing pressures, making consumers more cautious about upgrading their devices.
The downturn came despite the festive shopping season getting underway. Smartphone makers and retailers adopted a cautious approach to inventory amid uncertain demand, while online-focused sales channels recorded weaker shipment momentum. The later timing of Diwali also shifted part of the festive stock build-up for offline retailers from September to October.
Samsung Reclaims Top Position
Samsung ranked first in India for the first time since the January-March quarter of 2024, shipping 6.7 million units and securing a 19 per cent market share, according to Omdia. Shipments registered a marginal year-on-year decline, but demand across its Galaxy A series and premium devices helped the company maintain its lead.
The Galaxy A07, A17 and A27 supported volumes, while the Galaxy S26 series, new Z foldable devices and S26 FE strengthened its premium portfolio. Cashback offers, exchange benefits and extended financing options also supported purchases.
Apple ranked fifth, with shipments of 3.9 million units. According to Omdia, channel stocking ahead of anticipated price increases and demand for the standard iPhone 17 and iPhone 16 models supported volumes, in the absence of a new standard iPhone 18.
The iPhone 18 Pro and Pro Max, introduced towards the end of the quarter, gained traction through cashback schemes, exchange bonuses and no-cost equated monthly instalment (EMI) offers.
Vivo, Oppo And Xiaomi Face Pressure
Vivo slipped to second place after shipments fell 34 per cent year-on-year to 6.4 million units, the sharpest contraction among the five largest vendors. Omdia attributed the decline to repeated price increases, difficulties in planning channel inventory and limited availability of entry-level devices.
The Y11 5G and Y21 5G contributed to shipments, alongside the returning S-series, led by the S2. However, these models were insufficient to offset the broader slowdown.
Oppo ranked third, with shipments declining 24 per cent to 4.9 million units. Higher prices and cautious retailer orders affected its A-series models. The company focused on higher-value sales through its Reno16 range, using camera-focused features and financing offers to support demand.
Xiaomi placed fourth, shipping 4.7 million units, down 28 per cent from a year earlier. Rising component costs prompted changes to pricing and memory and storage configurations, putting pressure on its value proposition.
The Redmi 15A and A7 supported volumes, while the Redmi Note 17 series and POCO X8 and X8 Power formed part of its higher-value portfolio.
Chinese Brands Lose Market Share
Chinese smartphone manufacturers collectively accounted for around 68 per cent of India’s smartphone market in the third quarter, down from 75 per cent in the corresponding period last year, according to Omdia Principal Analyst Sanyam Chaurasia.
Chaurasia said online sales channels had a weaker advantage during the festive season. Fewer exclusive launches, a limited range of affordable models and smaller differences in promotional offers affected shipment momentum in September.
The decline in online smartphone sales during Navratri, reported by Counterpoint Research, adds to evidence of weaker demand through digital channels. Meanwhile, AIMRA’s estimate of a nearly 20 per cent fall in physical-store sales volumes indicates that brick-and-mortar retailers also faced pressure during the festive period.
Samsung and Apple benefited from their premium portfolios, consumer demand, established retail partnerships and structured upgrade programmes, Chaurasia said.
The divergence between sales volumes and overall sales value points to the impact of higher prices on the market. While consumers purchased fewer devices, increased component costs and retail prices helped keep smartphone sales value almost unchanged, according to AIMRA.
Smartphone Market Faces Further Contraction In 2027
Omdia expects India’s smartphone market to contract by a further low-single-digit percentage in 2027 following a difficult 2026. Elevated prices and longer device replacement cycles are likely to continue weighing on demand, with pricing pressures expected to persist through at least the first half of next year.
Chaurasia said smartphone makers would need to offer more meaningful improvements in user experience rather than rely on incremental hardware upgrades to encourage consumers to replace their devices.
Artificial intelligence features that go beyond basic assistance to provide more proactive and personalised functions could help stimulate upgrades. Omdia’s User Innovation Readiness research found that nearly four in 10 respondents in India said useful AI features could make them willing to pay more for a smartphone.
Stronger retail partnerships, financing options, trade-in incentives and structured upgrade programmes will also remain important in converting consumer interest into purchases.
For manufacturers, the immediate challenge is to balance higher component costs with affordability while offering compelling reasons for consumers to upgrade. The contrasting performance in Gujarat, where smartphone sales volumes grew 15 per cent during Navratri, also suggests that demand conditions varied across regions despite the broader slowdown.
