India’s smartphone market contracted the steepest in several quarters, with shipments falling 26% to 35.8 million units in the July‑September period, the lowest third‑quarter volume since 2016.
Samsung’s surge to 6.7 million units displaced Vivo, which slipped to 6.4 million after a 34% drop, the sharpest decline among the top five vendors. Chinese brands combined share fell from 75% to 68%, reflecting a shift in consumer preference and supply dynamics.
Higher prices, supply curbs ahead of the festive season, and rising component costs forced manufacturers to trim memory configurations and cut back on entry‑level models. Samsung’s Galaxy A‑series, coupled with cashback, exchange, and extended financing offers, attracted buyers across price brackets, while Vivo struggled to maintain inventory levels.
Retailer Suraj Patel of a Delhi electronics stall said the price hikes left customers hesitant: “We saw a drop in footfall; people now keep their phones longer to avoid the extra cost.” The shift also pushed some offline stocking into October, as Diwali sales slowed.
Omdia’s principal analyst Sanyam Chaurasia warned that the decline could persist beyond the festive calendar, citing a low‑single‑digit drop forecast for 2027. The forecast underscores a market where consumers hold phones longer amid sustained pricing pressure.