India has seen the sharpest rise in mobile phone retail prices in the world due to the impact of rising memory prices, with average prices expected to rise 21 percent year-on-year in 2026, according to a study conducted by Counterpoint Research globally. This is much higher than global mobile retail price growth, which is estimated at 15 percent over the same period.
The reason for the sharper growth in India is simple: 51 percent of the Indian mobile market is in the lower and mid-tier segments, with handsets priced below Rs 20,000. As a result, even the percentage increase is much higher on lower-end phones compared to premium phones priced above Rs 30,000 where the increase is less. Additionally, OEMs’ ability to absorb some of the cost increases on lower-end phones is limited compared to high-end and premium phones.
Markets with higher levels of premium and where phones are bundled by carriers have seen much more moderate percentage price increases. These include China, where prices rose by 10 percent, Europe by just 7 percent and the United States by just 5 percent. In contrast, markets such as Asia-Pacific saw prices rise by 19 percent, followed by 18 percent in the Middle East and Africa. Latin America saw much slower price growth, rising 16 percent.
The price surge in India has had a two-fold impact, says Shubham Singh, an analyst at Counterpoint Research: “Consumers are responding by postponing or postponing upgrades, opting for models with lower storage capacity and even 4G models as prices have risen substantially.” As a result, analysts estimate that smartphone sales in India will fall by 14-16 percent in 2026.