India smartphone market slumps 20% YoY, Samsung returns to No. 1 spot after nine quarters as company 'outperforms overall market'

India's smartphone shipments fell 20% year-on-year (YoY) in the July-September quarter of 2026 to their lowest level in a decade, as rising memory prices pushed up phone costs and weakened demand. According to Counterpoint Research, Samsung reclaimed the top spot after nine quarters, with a 17% market share, as it performed better than the overall market. Vivo followed with 16%, while Oppo and Xiaomi, including POCO, held 12% each. Shipments of smartphones priced below Rs 20,000 fell 47% during the quarter as consumers delayed upgrades and became more careful about spending.Why smartphone shipments fallAccording to the Counterpoint Research, record-high memory prices increased smartphone manufacturing costs, leading brands to raise prices. This made phones less affordable, particularly in the mass-market segment below Rs 15,000. Consumers responded by extending the time between phone upgrades or postponing purchases. Smartphone makers also kept their inventories low ahead of the festive season instead of pushing for higher sales volumes.Shubham Singh, research analyst at Counterpoint Research, said rising component costs and weak consumer demand put pressure on the market. He added that shipments of phones priced below Rs 20,000 fell 47% as higher prices pushed some models into more expensive price categories.Samsung returns to No. 1 spotSamsung regained the top position in India's smartphone market with a 17% share in Q3 2026, after nine quarters. Its Galaxy A series helped drive sales, while its presence across online and offline retail channels supported shipments. Counterpoint said Samsung's relatively limited price increases and management of rising memory costs helped it perform better than the overall market. Its eighth-generation Galaxy foldable phones also gained consumer interest.Vivo, excluding iQOO, ranked second with a 16% share. Its Y series continued to drive sales, although the T series remained under pressure. The company also introduced its S series to fill the gap between its Y and V series.Oppo held third place with a 12% share. It recorded strong growth in the segment above Rs 20,000 as it shifted more focus towards mid-range and premium phones.Xiaomi, including POCO, also recorded a 12% share, placing it fourth. The company performed well in the Rs 10,001-Rs 20,000 price segment, with POCO's C series and Redmi's A and number series supporting shipments.You use AI every day. Now get your AI Quotient. Take the AIQ test.