Chinese smartphone brands are losing ground in the Indian market, with their combined market share declining to around 68% in July-September 2026 from about 75% a year earlier. Higher memory chip prices have increased smartphone manufacturing costs, with the impact most pronounced in the low-cost segment. Indian brands such as Lava and Ai+ are gaining an opportunity to expand their presence.
Chinese Brands Reach More Than Eight-Year Low in Market Share
According to market research firm Omdia, Chinese smartphone brands held a combined share of around 68% of the Indian market in the July-September quarter. The figure is described as the lowest level in more than eight years.
A year earlier, Chinese companies accounted for about 75% of the Indian smartphone market in the same quarter. Their share had reached around 80% during April-June 2020.
A large portion of Chinese companies' smartphone sales has traditionally come from lower-priced devices. Selling these phones at previous price points has become more difficult as costs have increased. While consumer demand remains, companies are finding it harder to offer more features at the same low prices.
Higher Memory Chip Prices Increase Cost Pressure
Smartphones use storage memory to store photographs, videos and other files, while RAM is used to run applications and support the phone's operations.
Memory chip prices have increased significantly in recent times, raising costs for smartphone manufacturers.
Companies selling higher-priced phones can pass on part of the increased costs to consumers. However, doing so is more difficult in the low-cost segment, where even a modest price increase can lead customers to consider alternative models.
As a result, several companies are reducing the number of low-budget smartphones they offer. Some models are also being modified by changing RAM, storage or other features in an effort to contain costs.
Vivo, Oppo and Xiaomi See Lower Shipments
Shipments of smartphones from several major Chinese companies declined during the July-September quarter. According to Omdia data, Vivo shipped around 6.4 million phones to the market, approximately 34% lower than a year earlier.
Oppo's shipments stood at around 4.9 million phones, a decline of 24%. Xiaomi shipped around 4.7 million phones, with its shipments falling 28% over the year.
Amid higher component costs and changing consumer preferences, companies are placing greater focus on mid-range and premium-priced smartphones.
Lava and Ai+ Gain Opportunity in Indian Market
The decline in low-budget models from Chinese companies is creating an opportunity for domestic smartphone brands. Companies such as Lava and Ai+ are seeking to reach consumers looking to purchase new phones without spending more.
According to Counterpoint Research, Indian smartphone brands increased their market share during July-September 2026. Some reports put the figure at around 7%, while another published figure mentions 15%. Research reports therefore show a difference in estimates of domestic brands' market share.
During the quarter, Ai+'s phone shipments increased 306% from a year earlier. The company focused on expanding its new models and sales reach.
However, maintaining market share will remain a challenge for Indian companies. They will also need to focus on phone quality and after-sales services alongside pricing.
Samsung Regains Top Position in India
As Chinese brands lost market share, Samsung regained the top position in the Indian smartphone market.
According to Omdia, Samsung shipped around 6.7 million smartphones during the July-September quarter. The company returned to the top position for the first time since the first quarter of 2024.
Vivo ranked second and Oppo third. Xiaomi ranked fourth, while Apple secured a place among the top five companies.
Samsung and Apple benefited from their higher-priced smartphones, bank offers and facilities allowing consumers to exchange older phones for new devices.
Overall Smartphone Shipments in India Also Decline
The slowdown is not limited to Chinese companies. The overall Indian smartphone market also recorded weaker shipments.
According to Omdia, around 35.8 million smartphones were shipped in India during July-September 2026, down 26% from the same period last year. The quarterly figure was the weakest since 2016.
Counterpoint Research estimated the decline at around 20%. While the two reports differ in their estimates of the decline, higher smartphone prices and weaker demand were identified as major challenges for the market.
Companies are finding it increasingly difficult to persuade consumers whose existing phones are functioning properly to purchase new devices.
Memory and Component Costs May Keep Budget Phones Expensive
Consumers looking to buy low-cost smartphones are unlikely to see a significant decline in prices in the near term. Memory chips and other components used in smartphone manufacturing are already more expensive. Market experts believe the situation could continue through the first six months of 2027.
Against this backdrop, Indian mobile companies are seeking to reach more customers by selling low-budget smartphones. Larger brands, meanwhile, are focusing on devices offering cameras, longer-lasting batteries and new features.
