India's smartphone shipments fall 26 pc in Q3: Report

New Delhi: India's smartphone shipments fell 26 per cent year-on-year to 35.8 million units in the third quarter of 2026, while Samsung regained the top position in the market, a report said on Monday.

According to a report by Omdia, the decline was driven by higher smartphone prices, cautious consumer spending and weaker replacement demand, prompting vendors to adopt more conservative inventory strategies.

A slowdown in online-focused shipments and the later timing of Diwali also weighed on volumes, as a significant portion of festive inventory build-up shifted from September to October, it added.

Moreover, Samsung regained the top position in the Indian smartphone market for the first time since the first quarter of 2024, shipping 6.7 million units during the quarter.

The company benefited from demand for its Galaxy A07, A17 and A27 models, while the Galaxy S26 series, foldable devices and S26 FE strengthened its premium portfolio.

Promotional offers including cashback schemes, exchange benefits and extended financing plans also supported upgrades.

Apple rounded out the top five with shipments of 3.9 million units, supported by dealer stocking ahead of anticipated price increases and continued demand for the iPhone 17 and iPhone 16 models. However, sales were also aided by cashback offers, exchange programmes and no-cost financing schemes.

Meanwhile, vivo slipped in rank with shipments of 6.4 million units, down 34 per cent from a year earlier, the sharpest decline among the top five brands.

The report attributed the fall to repeated price increases, inventory planning disruptions and constrained supplies in the entry-level segment.

OPPO witnessed shipments of 4.9 million units, down 24 per cent year-on-year, while Xiaomi’s shipments fell 28 per cent to 4.7 million units.

The report further noted that rising component costs affected pricing strategies and weakened value propositions across key product categories for both brands.

According to Omdia, the quarter highlighted a structural shift in India's smartphone market as festive-season growth becomes increasingly channel-driven rather than led by large online sales events.

"India's smartphone market is shifting from online-led shipment expansion during the festive period to more selective, channel-driven growth, challenging vendors' traditional volume strategies," said Sanyam Chaurasia, principal analyst at Omdia.

The research firm noted that fewer online-exclusive launches, a limited number of affordable models and narrowing promotional differences reduced the attractiveness of online channels during the festive period.

Additionally, Chinese smartphone makers were particularly affected by the trend with their combined market share declining to about 68 per cent in the third quarter from 75 per cent a year earlier.

The report has expected the domestic smartphone market to contract by a further low-single-digit percentage in 2027 following a difficult 2026 as vendors contend with rising prices and longer device replacement cycles.