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India's average smartphone selling price rose 16% YoY in H1 2026

ICICIdirect Research 30 Sep 2026 DISCLAIMER

News: As per media reports, India’s average smartphone selling price rose 16% YoY in H1 2026 to a record $318 in Q2 2026, even as the overall market is expected to contract by double digits. The sub-₹10,000 segment was the most impacted, with prices rising around 32% and shipments plunging 65% YoY, while the ₹10,000–15,000 segment declined 20%. The premium segment (>₹20,000), however, continued to grow, supported by higher launch prices, trade-ins and no-cost EMI. Rising DRAM/NAND costs, driven by AI data-centre demand, and rupee depreciation are the key cost pressures, with memory costs expected to remain elevated through at least 2028. OnePlus was an exception to the broader trend, limiting its average price increase to 8%, while its shipments are expected to grow 5% YoY in Q2 2026 despite the market contraction, aided by early component procurement and a diversified product portfolio

View: The sharp increase in smartphone ASP should provide realisation-led revenue support across the value chain, partially offsetting the expected volume decline. For retailers and distributors such as Aditya Vision, Electronics Mart, SS Retail and Redington, higher ASPs should translate into higher revenue per unit, while premiumisation and festive demand could provide additional support to topline growth. For Dixon Technologies, the higher ASP should support revenue growth as the company’s manufacturing revenues are linked to the value of devices produced; however, EBITDA growth is unlikely to mirror the revenue growth to the same extent, given its largely per-unit/assembly-led margin structure. Overall, continued premiumisation and higher smartphone prices could considerably offset the decline in volumes, supporting festive-season revenue growth, although affordability pressures in the sub-₹15,000 segment remain a key risk.

Impact: Positive

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