Rising Chip Costs Impact Chinese Smartphone Brands in India as Premium Makers Gain Ground
The Indian smartphone market is experiencing a shift due to rising memory chip costs, which are pushing up prices for budget phones. As cheaper chips become scarce and manufacturers raise prices by up to 40%, the affordability of sub-$150 Chinese smartphones—once dominant in India—is declining. This has led consumers toward mid-market and premium brands like Samsung and Apple. Market data from IDC shows that smartphone shipments in India fell to 64.2 million units during the first half of 2026, with a sharp drop in entry-level sales. While overall volume declined by 7.9%, average selling prices hit $315—a record high—due to increased costs passed on from chip suppliers. Chinese brands like Vivo and Xiaomi saw significant declines in shipments. Samsung's iPhone 17 remained the top-selling device for two consecutive quarters, while Apple also gained market share amid rising demand for premium phones.
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Topics: Apple Chinese brands pricing changes Samsung smartphones