The Bad PlaceTimes of India | India's smartphone market is going ‘premium,’ but not entirely by choice
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India's smartphone market grew 5.8% in value in Q1 2026 despite a 4.1% drop in shipments, as the average selling price hit a record $302, driven largely by a collapse of phones under $100, which fell 59% year‑on‑year due to soaring DRAM and NAND costs that pushed memory to up to 20% of a low‑end phone’s bill of materials. This forced many budget models out of the market, pushing buyers into the $100‑200 segment, which absorbed the displaced demand and grew 10% to 45% of shipments. While premium bands ($400‑$800) also expanded, the overall “up‑market” narrative is partly a supply‑side effect rather than pure consumer choice. Brands felt the squeeze unevenly: OPPO, Motorola and Samsung held or gained share, whereas low‑cost players such as realme, Poco, iQOO and OnePlus saw steep declines, limited by rising component prices that curtailed aggressive discounting and online flash‑sale tactics. The memory shortage, driven by AI server demand, is expected to persist into 2027, likely keeping smartphone prices elevated across all segments.
#Oppo #Motorola #Samsung #Apple #realme #Poco #iQOO #OnePlus #DRAM #NANDflash #
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