Archive · 26 Jul 2026
Smartphone sales decline due to rising memory costs
Smartphone sales are going down because the parts inside them, like memory, have become more expensive.
This makes the phones more expensive, and people don't want to spend more money.
Many shops that sell phones are worried because they think they might not make enough money to stay open.
Some people are waiting to buy phones, while others are looking for cheaper options.
The shops are asking the government to make phones cheaper by reducing taxes, and they want the phone companies to help by lowering prices for cheaper phones.
The phone companies are focusing on selling more expensive phones instead of cheaper ones.
It's a tough time for everyone involved.
Rising memory costs have pushed smartphone prices beyond consumers' budget ranges.
49% of retailers reported a decline in business in the first half of 2026.
50% of retailers worry about festive season sales, and 48% fear their business may not survive until the end of 2026.
54% of consumers refused to stretch their budget, 25% delayed purchases, and 29% looked for alternative solutions.
Retailers are requesting government intervention to reduce GST and import duties, and asking brands to absorb costs in the entry-level segment.
- Who
- Retailers, consumers, and smartphone brands
- What
- Decline in smartphone sales due to rising memory costs
- When
- First half of 2026
- Where
- India
- Why
- Rising memory costs have pushed smartphone prices beyond consumers' budget ranges, leading to a decline in sales volume.
Retailers and Consumers
Smartphone Brands
Price Sensitivity
Retailers and Consumers
Consumers are unwilling to stretch their budgets beyond their planned limits, leading to a decline in smartphone sales volume.
Smartphone Brands
Brands are realigning their portfolios towards higher-value products, focusing on the mid-to-premium segment.
Market Strategy
Retailers and Consumers
Retailers are requesting government intervention to reduce GST and import duties, and asking brands to absorb costs in the entry-level segment.
Smartphone Brands
Brands are shifting their focus to higher-value products and expanding no-cost EMI options to attract consumers.
- Date
- July 26, 2026
- Survey Participants
- 1,126 retailers
- Business Decline
- 49% of retailers reported a decline in business in the first half of 2026
- Festive Season Concerns
- 50% of retailers worry about festive season sales
- Survival Concerns
- 48% of retailers fear their business may not survive until the end of 2026
- Consumer Behavior
- 54% of consumers refused to stretch their budget, 25% delayed purchases, and 29% looked for alternative solutions
- Retailer Requests
- 53% of retailers want GST and import duty reductions; 37% want brands to absorb costs in the entry-level segment