Now Reading: Smartphone shipments in India seen down 20% in Q3 2026
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Smartphone shipments in India seen down 20% in Q3 2026
A global shortage of memory chips is pushing up smartphone prices, with shipments in India estimated to fall by about 20% year-on-year in the July-September 2026 quarter, according to initial estimates from Counterpoint Research. The third quarter is set to be the weakest for global smartphone shipments since 2012, the research firm said, as chipmakers prioritise high-margin memory chips used in AI data centres over those used in phones.
The shortage affects DRAM chips used for RAM and NAND flash memory used for storage, both of which are becoming more expensive for phone makers. As a result, the retail price of smartphones worldwide has risen by about 20% so far in 2026. In India, where a large number of buyers look for phones in the Rs 10,000 to Rs 20,000 range, the impact could be felt more sharply. Companies are either raising prices or reducing supply of low-margin models.
Indian Opinion Analysis
The 20% shipment decline is an initial estimate, not a final figure, but it points to a structural shift: memory chip supply is being diverted to AI data centres, which pay more. Phone makers face a choice between absorbing higher costs or passing them on, and the data shows they are doing both. For India's budget-phone buyers, this means fewer options and higher prices in the months ahead. The next concrete check will be Counterpoint's final Q3 2026 India shipment data, which will confirm whether the trend held through the festive season.
Source: aajtak.in
This brief was synthesised by AI from the source linked above. Methodology and corrections.
