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India’s smartphone buyers are feeling the pinch as device prices climb steadily across segments, driven by rising component costs and tightening margins for manufacturers. The market is witnessing a noticeable shift, with several devices moving out of the affordable category and into higher price brackets.

Budget Phones Take The Hardest Hit

Fresh data indicates that more than 80 out of nearly 200 smartphone models in India, including different storage variants, recorded price hikes as of March 2026. On average, prices have increased by around 15%, with further hikes expected in the coming months.

The biggest impact has been felt in the sub-Rs 15,000 category, which has traditionally driven high volumes in India. Its market share dropped sharply to 33% in Q1 2026, down from 41% in Q3 2025, reflecting a clear shift away from ultra-affordable devices.

"Brands in this segment, typically operating on razor-thin margins, have struggled to absorb input cost increases," said Tarun Pathak, research director, devices and ecosystems at Counterpoint Research.

As costs rise, companies are increasingly passing the burden onto consumers, leading to widespread repricing across entry-level models.

Mid-Range Segment Emerges As Winner

While budget phones are losing ground, the mid-range segment is gaining momentum. Devices priced between Rs 15,000 and Rs 30,000 have seen their market share jump from 35% to 45% over the same period.

This shift is not purely demand-driven. A significant number of smartphones that were earlier positioned in the budget category have now moved into the mid-range bracket due to price increases. As a result, buyers are finding fewer options at lower price points.

"Memory price inflation is impacting entry-tier segment, where brands have limited flexibility to absorb costs."

More Price Hikes Likely Ahead

Industry trends suggest that the current wave of price increases is far from over. Analysts expect smartphone prices to rise by another 15% in the second quarter of 2026. New launches, particularly those featuring upgraded hardware, could debut at prices 30% to 40% higher than comparable older models.

The ongoing rise in component costs, especially memory, continues to pressure manufacturers, leaving little room to maintain aggressive pricing strategies that once defined the Indian smartphone market.

For consumers, this means recalibrating expectations. The era of feature-packed smartphones at ultra-affordable prices may be gradually fading, as brands shift focus towards sustaining margins in an increasingly expensive supply chain environment.