India’s average smartphone prices increased 16% year-on-year in the first half of 2026 as rising memory costs and a weaker rupee pushed manufacturers to raise prices. Counterpoint Research says the impact has been particularly severe in the entry-level segment, while OnePlus followed a different pricing approach and limited its average increase to 8%.
The pricing pressure is also changing the shape of India’s smartphone market. Counterpoint says the average smartphone selling price reached a record $318 in Q2 2026, while shipments in the sub-Rs 10,000 segment fell sharply. At the same time, smartphones priced above Rs 20,000 continued to grow, helped by trade-in programmes and no-cost EMI options.
Memory Costs Push Smartphone Prices Higher
The biggest factor behind the price increases has been the rising cost of memory components. Counterpoint says growing demand from AI data centres has absorbed significant DRAM and NAND supply, increasing costs for smartphone manufacturers.
The weaker rupee has added another layer of pressure because smartphone production in India still depends heavily on imported components. Although nearly 99% of mobile phones sold in India are assembled locally, local assembly does not eliminate exposure to global component prices and currency movements.
Counterpoint expects memory costs to remain elevated through at least 2028, suggesting that manufacturers could continue facing pressure on hardware margins and retail pricing.
Entry-Level Smartphones Take the Biggest Hit
The sub-Rs 10,000 segment experienced the sharpest price increase during H1 2026. Counterpoint estimates that prices in this segment increased by around 32% on average.
The impact was visible in shipment volumes. Smartphone shipments in the sub-Rs 10,000 category declined 65% year-on-year during H1 2026. The Rs 10,000-Rs 15,000 segment also declined, with shipments falling 20%.
This creates a significant affordability challenge because the lower price bands traditionally account for a large portion of India’s smartphone volumes. Higher memory costs have a particularly strong impact on these devices because memory represents a larger proportion of the bill of materials in lower-cost smartphones.
Premium Smartphones Continue to Grow
The market has not experienced the same pressure across all price segments. Smartphones priced above Rs 20,000 continued to grow during H1 2026, according to Counterpoint.
Higher launch prices were partly offset by trade-in programmes and no-cost EMI options, allowing consumers to spread the cost of more expensive devices. This has helped the premium and upper-mid-range segments remain relatively resilient even as lower price categories contracted.
Counterpoint’s earlier 2026 research also showed that more than 80 smartphone models had already received an average price increase of 15% in Q1, with memory and currency pressures expected to remain significant through the following quarter.
OnePlus Keeps Price Increases Lower
OnePlus stands out in Counterpoint’s latest analysis. The company increased smartphone prices by 8% on average in H1 2026, roughly half the 16% industry average.
Its largest individual price increase was 12%, compared with 113% for the largest single increase among other brands tracked by Counterpoint. The latter figure should not be interpreted as a 113% average industry increase.
Counterpoint attributes OnePlus’ comparatively moderate pricing response partly to earlier component procurement. The company secured component inventory earlier in the year, allowing it to lock in memory costs before prices increased further.
The company’s broad product portfolio also helped distribute cost pressure across different price segments rather than concentrating the impact on a single range.
OnePlus Gains Momentum Despite Market Pressure
The pricing strategy appears alongside stronger channel performance for OnePlus. Counterpoint says OnePlus was the fastest-growing brand among the top five brands on online channels in the above-Rs 20,000 segment during Q2 2026.
The company recorded 49% quarter-on-quarter shipment growth in Q2, according to Counterpoint’s analysis cited by The Economic Times. Its shipments are also forecast to grow 5% year-on-year in the quarter, even as the overall smartphone market is expected to contract by double digits.
OnePlus was also the leading brand on online channels in the Rs 30,000-Rs 45,000 price band, according to Counterpoint. The company’s performance suggests that consumers in higher price segments may be more willing to absorb price increases when supported by financing, trade-in offers and strong product positioning.
What It Means for Indian Smartphone Buyers
The latest data points to a widening difference between India’s budget and premium smartphone markets. Buyers looking for phones below Rs 15,000 are facing higher prices and fewer affordable options, while consumers in higher price bands continue to have access to financing and trade-in programmes that can soften the impact.
For smartphone brands, the challenge is more complicated. Simply passing higher memory and component costs to consumers risks weakening demand in price-sensitive categories. Absorbing those costs, meanwhile, can put pressure on margins.
Counterpoint’s findings show why companies are increasingly looking at component procurement, portfolio breadth and pricing strategy alongside hardware specifications. OnePlus’ relatively limited price increases provide one example of how early inventory planning can reduce the immediate impact of a memory-cost shock.
With memory prices expected to remain elevated through at least 2028, the affordability pressure could remain an important factor in India’s smartphone market. For consumers, this could mean higher entry prices, longer replacement cycles and greater reliance on exchange offers and financing when upgrading to a new phone.
