India's Smartphone Market Faces Decline Amid Supply Crunch and Rising Prices

India's smartphone market is expected to face a significant downturn in 2026, with shipments projected to decline 12-15 percent due to a global chip shortage, rising component costs, and a volatile rupee. This slump follows a flat 2025 and marks the steepest drop since 2019. Chinese smartphone brands, dominant in the entry- to mid-level segments, saw their sales and revenue fall for the first time amid shifting consumer preference toward premium devices and rising prices driven by increased memory chip costs. While premium segments may grow, the sub-200 price segment faces the most pressure, with supply constraints expected to ease only by mid-2027.