India's Smartphone Shipments Fall 26%, Chinese Brands Lose Market Share

India's smartphone market shipped an estimated 35.8 million units in the July-September quarter of 2026, a 26 percent drop from a year earlier, according to research firm Omdia. It is the weakest third-quarter volume for the country since 2016, and it came even though the festive season had begun.

Pricing and Diwali timing hit demand

Omdia said costlier handsets and cautious household spending dampened replacement purchases, which led brands to hold leaner inventories. A decline in online-focused shipments added to the pressure. The later Diwali date also exaggerated the quarterly fall, as a large share of the offline festive stocking moved from September into October.

Samsung returns to the top

Samsung led the market for the first time since the first quarter of 2024, shipping 6.7 million units. Omdia credited the Galaxy A07, A17 and A27 for volumes, while the Galaxy S26 series, the new Z-series foldables and the Galaxy S26 FE strengthened its higher-priced lineup. Bank cashbacks, exchange offers and longer financing tenures helped buyers upgrade across price bands.

Vivo slipped to second with 6.4 million units, down 34 percent year-on-year, the steepest fall among the top five. Omdia said repeated price increases disturbed channel planning, and tight supply of entry-level models hurt its competitiveness. The Vivo Y11 5G and Vivo Y21 5G carried most of its volumes, with the returning S-series, led by the S2, adding to the total.

Oppo took third place with 4.9 million units, down 24 percent, as higher prices and conservative retailer stocking affected its core A-series. Its Reno 16 series, backed by camera-led positioning and financing schemes, supported its push towards pricier devices.

Xiaomi was fourth with 4.7 million units, a 28 percent decline. Omdia said rising component costs forced the company to compromise on pricing and RAM and storage configurations, weakening its value-for-money appeal. The Redmi 15A and A7 sustained volumes, while the Redmi Note 17 series, Poco X8 and X8 Power served the higher-value segment.

Apple was fifth with 3.9 million units. Omdia said retailers stocked up ahead of expected price increases, and demand stayed firm for the base iPhone 17 and iPhone 16 because there is no base iPhone 18 this year. The iPhone 18 Pro and Pro Max, launched late in the quarter, are gaining traction on the back of bank cashbacks, exchange bonuses and no-cost EMI options.

Chinese brands lose share

Sanyam Chaurasia, Principal Analyst at Omdia, said the market is moving away from online-led festive expansion towards "more selective, channel-driven growth", which challenges the volume strategies vendors have traditionally relied on. He noted that September, usually a key month for stocking ahead of major online sales, was weak. Fewer exclusive launches, a limited choice of affordable models and smaller promotional gaps between channels eroded the online advantage.

This hurt Chinese brands the most, Chaurasia said. Their combined share fell to about 68 percent in 3Q26 from 75 percent a year ago. Samsung and Apple gained ground through premium portfolios, established channel ties and structured upgrade programmes.

Further decline expected in 2027

Omdia expects the market to contract by a low-single-digit percentage again in 2027. Chaurasia said higher prices and longer device lifecycles are becoming structural challenges, and that pricing pressure is likely to last at least through the first half of 2027. He said vendors will have to go beyond incremental hardware upgrades and offer AI features that move from basic assistance to more proactive and personalised use.