Indian smartphone prices surged by an average of 16% during the first half of 2026, driven by higher memory costs and a weaker rupee, but OnePlus restricted its average price hike to 8%, according to a report from Counterpoint Research. The broader price increases pushed India’s average smartphone selling price to a record $318 in the second quarter of 2026. The surge in DRAM and NAND flash memory rates, created by intense semiconductor procurement for AI data centres, forced manufacturers to transfer costs to consumers. Over 380 device variants across the market recorded revisions, with individual increases reaching up to 113%. In contrast, OnePlus limited its adjustments to 11 variants, capping its maximum single hike at 12%.
Key Takeaways
- India’s smartphone industry saw an average price increase of 16% in H1 2026, while OnePlus limited its increase to 8%.
- The average selling price of smartphones in India touched a high of $318 in Q2 2026.
- Budget phones under Rs 10,000 experienced the sharpest price jump at 32%, resulting in a 65% year-on-year shipment drop.
- OnePlus grew shipments by 49% quarter-on-quarter in Q2 2026 and led Amazon Prime Day sales in the Rs 15,000 to Rs 65,000 segment.
- Research estimates indicate memory costs will stay elevated until 2028, keeping pressure on hardware makers.
Budget Buyers Face Direct Impact
The price increases did not hit all segments equally. Entry-level smartphones priced below Rs 10,000 absorbed the heaviest impact, rising by about 32% on average. Memory chips form a much larger portion of the total bill of materials in budget handsets, leaving phone makers minimal room to absorb component spikes. Because of these higher tags, shipments in the sub-Rs 10,000 category plunged 65% year-on-year in the first half of 2026.
The Rs 10,000 to Rs 15,000 segment also contracted, falling 20% in shipments. Devices priced above Rs 20,000 continued to find buyers, supported by retail financing schemes like no-cost EMIs and trade-in exchange bonuses that lowered immediate upfront costs.
Supply Planning Aids OnePlus Market Position
While rivals scaled back shipments or increased retail prices, OnePlus recorded a 49% quarter-on-quarter shipment rise in the second quarter of 2026. Tarun Pathak, research director at Counterpoint Research, pointed out that OnePlus avoided the typical tradeoff between profit margins and sales volume by booking component inventory early at lower contracts.
The company also used its spread of nine active devices, selling between Rs 16,999 and Rs 93,999, to distribute overhead costs across multiple models rather than piling costs onto its budget Nord offerings. The Nord 6 and Nord CE6 lines led Amazon launch-day sales in their respective bands, helping OnePlus rank as the top online seller in the Rs 30,000 to Rs 45,000 bracket. Projections show OnePlus shipments expanding 5% year-on-year in the third quarter of 2026, even as the wider Indian smartphone market prepares for a double-digit decline.
Frequently Asked Questions
Q1. Why are smartphone prices rising in India in 2026?
A1. Heavy demand for DRAM and NAND memory from artificial intelligence data centres has constrained global supply, raising component costs while the rupee’s depreciation has added to import bills.
Q2. How much did OnePlus increase its smartphone prices in H1 2026?
A2. OnePlus raised its prices by an average of 8%, half of the wider industry average increase of 16%.
Q3. Which smartphone price segment suffered the biggest decline?
A3. Phones under Rs 10,000 saw a 32% price jump, causing shipments in that segment to drop 65% year-on-year.
Q4. When will memory chip prices go down?
A4. Component industry estimates from Counterpoint Research indicate that memory prices will stay high and are unlikely to ease before 2028.
