According to a report by Omdia research, India’s smartphone shipments fell by 5 per cent year on year to 30.9 million units in first quarter (Q1) of 2026, reflecting seasonally weak demand compounded by cautious channel inventory strategies. Demand was pressured by macro headwinds, including rupee depreciation and rising inflation weighing on affordability and delayed consumer upgrades. Additionally, earlier front-loading ahead of expected price increases limited incremental channel intake.
The report mentioned that vivo retained its leadership position in Q1 2026, shipping 6.3 million smartphones to reach 20 per cent market share. Samsung followed in second place with 5.1 million units and 16 per cent share, supported by new launches toward the end of the quarter. OPPO (excluding realme and OnePlus) strengthened its position, securing third place with 4.7 million units and 15 per cent share, marking the strongest growth among the top five vendors. Xiaomi and Apple rounded out the top five with shipments of 3.8 million and 2.9 million units, respectively. For Apple, Q1 2026 marks its first Q1 appearance in India’s top five.
Commenting on the report, principal analyst, Omdia, said, “Amid growing supply-side pressures, the top vendors showed resilience as many long-tail vendors began to struggle. vivo retained the leadership position for a seventh consecutive quarter, boosted by strong sell-out visibility and traction from the V70 series. Samsung had a late-quarter boost driven by flagship Galaxy S26 and refreshed mid-range A-series, alongside strong volumes from entry-level A07 and A17 models. OPPO emerged as the fastest-growing vendor among the top 10, driven by robust momentum across the A6x, K14 and Reno 15 series. Reno 15’s performance was supported by a wider lineup with a broader SKU mix across mid-to-premium segments. In contrast, smaller vendors struggled to absorb rising costs and sustain channel confidence, leading to sharper declines after a period of expansion, with only a few players such as Motorola, iQOO and Google showing relative resilience.”
He added, “In Q1 2026, vendors took different approaches to pricing as cost pressures intensified. These shifts reflected diverging priorities across pricing, margins, launch cycles and channel inventory, exposing clear strategic differences. OPPO’s flat, portfolio-wide hikes signaled a rapid margin reset, effectively re-anchoring price ladders. Xiaomi’s tiered increases reflected a profit-optimising approach, selectively incentivising sales of higher-value SKUs. In contrast, Samsung and vivo adopted phased adjustments, aiming to protect demand and ensure smoother channel absorption. This divergence was most visible in the Rs 10,000- Rs 20,000 segment, where uniform hikes eroded affordability. At the same time, overlapping old and new inventory made channel execution a key differentiator. As Q2 2026 began with further price increases, the market is shifting from a tactical adjustment to a structural reset, where balancing margins and demand will define vendor performance.”
He further commented, “Looking ahead, the Indian smartphone market is facing severe downside risk in 2026 with shipments forecast to decline by double digits. Price increases have accelerated into Q2 2026, with entry-level devices already seeing steep increases of 18-20 per cent as sustained memory inflation has forced a reset of price points. At the same time, macro headwinds will constrain discretionary spending. In this environment, vendors must balance margin recovery with demand sensitivity, while channels tighten inventory alignment to avoid disruption. Upgrade cycles are set to elongate as consumers delay purchases while entry-level demand increasingly shifts toward repairs, second-hand devices and financing-led options.”
He concluded, “Although 2026 will test vendor discipline and tactics, vendors cannot afford to wait for conditions to improve, assuming supply-side pressures are short-term. The vendors best positioned in the long-term are those that adapt their business and revenue models for the long term, rather than simply focusing on short-term survival.”
