India Smartphone Prices Rose 16% in H1; OnePlus Among Few to Buck the Trend
India’s smartphone market became considerably more expensive in the first half of 2026, with average handset prices rising 16% year-on-year, according to Counterpoint Research. OnePlus was among the relatively few brands that stayed below that average, but the larger trend is clear: making and buying a smartphone in India is getting costlier.
Rising memory prices and a weaker rupee are raising costs across the industry, hitting affordable phones particularly hard. India’s average smartphone selling price reached a record $318 in Q2 2026, even as entry-level buyers began stepping away from the market.
The main culprit is memory. Global demand for DRAM and NAND has surged as AI data centres consume more supply, increasing the cost of the storage and RAM used in virtually every smartphone. A weaker rupee has made imported components even more expensive for manufacturers.
OnePlus, for instance, raised prices by 8% on average in H1 2026, against the industry average of 16%. That is still a meaningful increase for consumers, but notably lower than what most rivals passed on during the same period.
Counterpoint says OnePlus had secured components earlier in the year, before prices rose further, and had a broad enough product portfolio to distribute the pressure across different price bands. Across the market, however, the impact was far more severe, with more than 380 smartphone models affected and the highest individual price hike reaching 113%.
The sub-₹10,000 segment bore the biggest hit, with average prices rising by roughly a third. Shipments in that category fell 65% year-on-year in H1 2026. The ₹10,000-₹15,000 bracket, another crucial volume segment, declined 20%.
That contrast is stark when compared with smartphones above ₹20,000, which continued to grow. Trade-ins, bank offers and no-cost EMIs have helped buyers manage higher prices in the premium segment, benefits that matter far less to someone shopping for the most affordable device.
OnePlus’ 49% quarter-on-quarter shipment growth in Q2 shows how a smaller price increase can matter when buyers are weighing alternatives. But OnePlus is not immune to the same component-cost pressures facing the rest of the industry, and its performance does not change what is happening to India’s most price-sensitive buyers.
Counterpoint expects memory costs to stay elevated until at least 2028, leaving brands with few easy choices: absorb the increase, cut specifications or raise prices again.
OnePlus’ approach shows that timely component procurement and a wide product range can soften the blow, but not every brand has that flexibility. For consumers, the likely result is a longer upgrade cycle, more dependence on sale prices, and a sharper focus on older models that offer better value.
India’s smartphone market may be moving towards higher average selling prices, but the fall in entry-level shipments suggests that this is not simply premiumisation. It is also a warning that smartphones are becoming harder to afford for the buyers who once powered the market’s growth.