Archive · 19 Aug 2026
Rising Smartphone Prices Challenge India’s Festive Sales Expectations
Phones in India are becoming more expensive.
At the same time, fewer people are buying new smartphones.
However, expensive premium phones, especially foldable models, are still attracting buyers.
Companies that build artificial-intelligence systems are buying large amounts of computer memory.
This has contributed to shortages of memory used in phones and laptops.
The shortages can make devices more expensive to produce.
Festive sales may still include discounts, bank offers, and exchange deals.
But shoppers may not see the very large savings they have seen in earlier years.
Smartphone shipments in India fell 11.1% year-on-year in the second quarter of 2026, according to International Data Corporation.
The average smartphone price in India rose 14.4%, even as overall shipments declined.
Premium phones, including foldables, remain in demand despite higher prices, with global foldable shipments forecast to grow 21% in 2026.
Memory shortages linked to artificial-intelligence infrastructure investment are raising production costs for smartphones and laptops.
Festive sales may offer price cuts of Rs 5,000 to Rs 10,000, but discounts and savings may be less substantial than in previous years.
- Who
- Smartphone brands, artificial-intelligence companies, retailers, and Indian consumers are involved.
- What
- Smartphone shipments are declining while average prices and premium-segment demand are rising.
- When
- The shipment figures concern the second quarter of 2026; the discussion also covers upcoming festive sales in 2026.
- Where
- India, with global foldable-phone forecasts also cited.
- Why
- Higher memory costs and shortages linked to artificial-intelligence infrastructure investment are contributing to higher device prices and weaker expected discounts.
Consumer Concerns
Premium-Market Resilience
Affordability
Consumer Concerns
Higher phone prices, memory shortages, and less generous discounts could discourage upgrades and make budget smartphones particularly difficult to afford.
Premium-Market Resilience
Some consumers may choose cheaper 4G models, while others continue paying more for premium devices they consider desirable.
Festive-sale savings
Consumer Concerns
Consumers may expect discounts, bank offers, and exchange deals to make phones more affordable during sales on Flipkart, Amazon, and other retailers.
Premium-Market Resilience
Brands may change their usual pricing and discount cycles, so advertised offers may not produce the same level of actual savings as in previous years.
Demand outlook
Consumer Concerns
The 11.1% decline in Indian smartphone shipments suggests that higher prices are weakening overall demand and delaying upgrades.
Premium-Market Resilience
The premium segment is reportedly thriving, and global foldable smartphone shipments are forecast to rise 21% in 2026.
- India smartphone shipments
- Down 11.1% year-on-year in the second quarter of 2026, according to International Data Corporation.
- Average smartphone price
- Increased 14.4% in India.
- Foldable shipment forecast
- Global foldable smartphone shipments are predicted by Counterpoint Research to grow 21% in 2026.
- Memory shortage
- Shortages of high-bandwidth memory and DRAM are affecting consumer-electronics production.
- Reported Pixel 11 price increase
- Google increased Pixel 11 series prices by up to Rs 14,000.
- Reported Samsung price increases
- The Galaxy Z Fold 8, Fold 8 Ultra, and Flip 8 reportedly rose by Rs 15,000 to Rs 25,000.
- Expected festive discounts
- Some devices may receive price cuts of Rs 5,000 to Rs 10,000, along with bank and exchange offers.