Omdia: India's smartphone shipments in the first quarter of 2026 fell by 5% year-on-year to 30.9 million units.

The latest research from Omdia shows that in the first quarter of 2026, the shipment volume of smartphones in India decreased by 5% year-on-year to 30.9 million units, reflecting soft seasonal demand and the cautious impact of channel inventory strategies. Macroeconomic factors are dragging down, including the depreciation of the rupee and rising inflation putting pressure on consumer purchasing power, leading to a postponement in replacement demand. In addition, early stocking before expected price increases last year has also limited new channel purchases. In the first quarter of 2026, vivo (excluding iQOO) continued to maintain its leading position with a shipment volume of 6.3 million units, reaching a market share of 20%. Samsung ranked second with 5.1 million units and a 16% share, mainly benefiting from new phone releases at the end of the quarter. OPPO (excluding realme and OnePlus) performed steadily, ranking third with 4.7 million units and a 15% share, becoming the fastest-growing brand among the top five manufacturers. Xiaomi (01810) and Apple Inc. (AAPL.US) ranked in the top five with shipment volumes of 3.8 million and 2.9 million units, respectively. For Apple Inc., the first quarter of 2026 marked its first entry into the top five in the Indian market. Omdia's Chief Analyst Sanyam Chaurasia said, "In the backdrop of increasing pressure on the supply side, leading manufacturers are showing strong resilience, while smaller players are beginning to face significant challenges. vivo has maintained its market leadership for the seventh consecutive quarter, mainly benefiting from the visibility and stable sales volume brought by the V70 series and channel momentum. Samsung saw growth driven by flagship Galaxy S26 and upgraded mid-range A-series at the end of the quarter, while entry-level A07 and A17 also contributed substantial shipment volumes. OPPO became the fastest-growing brand among the top ten manufacturers, with growth coming mainly from the strong performance of the A6x, K14, and Reno 15 series. The Reno 15 expanded coverage of the mid-to-high-end segment market through a wider range of SKUs, further enhancing product matrix competitiveness. In contrast, smaller players are facing challenges due to rising costs and decreasing channel confidence, struggling to maintain growth momentum and experiencing more significant declines after previous expansions, with only a few players such as Motorola, iQOO, and Google showing relative resilience." Chaurasia added, "In the first quarter of 2026, there is a clear differentiation in pricing strategies among manufacturers. This difference reflects different priorities in price, profit margins, release schedules, and channel inventory management, highlighting the divergence in strategic paths among manufacturers. OPPO has implemented a strategy of uniformly raising prices across its entire product line, quickly completing profit reevaluation and rebuilding the price system; Xiaomi has adopted a tiered price increase strategy, optimizing the sales structure of high-value SKU through differentiated adjustments; Samsung and vivo have taken a phased price adjustment approach to protect demand and ensure smooth channel inventory digestion. This differentiation is particularly evident in the Rs. 10,000Rs. 20,000 price range, where unified price increases lead to decreased affordability. At the same time, the overlap of new and old product inventories makes channel execution capability a key competitive variable. Before further price increases in the second quarter of 2026, the market is transitioning from short-term tactical adjustments to deeper structural reshaping, and the ability of manufacturers to strike a balance between profit and demand will ultimately determine their performance." Looking ahead, the Indian smartphone market is facing significant downside risks in 2026, with shipment volumes expected to decline by double digits. After entering the second quarter of 2026, price increases will accelerate further, with entry-level device prices already seeing a drastic increase of 18%-20%, continuing memory inflation prompting a comprehensive reset of the price system. At the same time, macroeconomic pressures will also constrain consumer disposable income. In this environment, manufacturers need to strike a balance between profit and demand, and channels will further tighten inventory management to avoid the impact of market fluctuations. The replacement cycle for consumers is expected to lengthen, as users delay their purchase behavior, and entry-level demand gradually shifts towards repair, second-hand devices, and installment payment models. Chaurasia concluded, "Although 2026 will test the execution capabilities and adaptive strategies of manufacturers, they cannot assume that the pressure on the supply side is only a short-term factor and wait for the market to recover naturally. In the long run, winning manufacturers will be those who can adjust their business models and revenue structures, and match them in the long term, rather than relying on short-term response strategies."