Sales of smartphones and laptops witnessed a significant slowdown in June 2026 as rising device prices forced many consumers to delay purchases. Industry estimates suggest mobile phone sales volumes declined by 12-15% year-on-year, while laptop sales dropped by 16-18%.
According to data from industry research firms IDC, Counterpoint, and CyberMedia Research (CMR), higher prices have particularly affected entry-level buyers, leading to weaker demand across the affordable segment.
Device Prices Continue to Climb
The sharp increase in prices has emerged as the biggest challenge for the consumer electronics market.
Between January and June 2026, the average selling price of smartphones increased by more than 20%. Meanwhile, laptop prices rose by 15-25% during the same period.
Industry executives believe prices may remain elevated through 2027 as global component shortages continue to affect manufacturing costs.
Affordable Smartphones Take the Biggest Hit
Recent market data shows a clear shift in buying patterns.
Smartphones priced below Rs 10,000 experienced a steep 42% decline in shipments after manufacturers raised prices in the entry-level category. As a result, many budget-conscious consumers moved to slightly higher-priced models that offer better value.
Devices in the Rs 10,000-Rs 20,000 range recorded 6% growth. At the same time, premium smartphones priced above Rs 30,000 delivered the strongest performance, posting around 10% growth.
This trend suggests that consumers who can afford higher-priced devices continue to spend, while buyers in the budget segment are becoming more cautious.
Refurbished Devices Gain Popularity
As new devices become more expensive, many consumers are turning to refurbished smartphones and laptops.
Distributors across the country have reported growing demand for second-hand devices. These products offer lower prices and have become an attractive option for buyers looking to upgrade without spending heavily.
Experts expect the refurbished market to continue benefiting as long as price pressures remain high in the new-device segment.
Memory Costs Driving Price Increases
One of the biggest reasons behind rising device prices is the dramatic increase in memory component costs.
RAM prices have surged nearly four times since December 2025 due to global supply shortages. Analysts say strong demand from artificial intelligence applications and data centres is consuming a larger share of global chip production capacity.
Consequently, manufacturers are facing much higher production costs.
Memory components account for a major share of device manufacturing expenses. Industry estimates suggest RAM contributes nearly 45% of smartphone production costs and around 35-38% of laptop manufacturing costs.
Rupee Weakness and Supply Chain Issues Add Pressure
Apart from component shortages, other factors have also pushed prices higher.
The stronger US dollar against the Indian rupee has increased import costs for electronics manufacturers. Additionally, recent geopolitical tensions in the Gulf region have led to higher freight charges and supply chain disruptions.
Therefore, companies have found it difficult to absorb rising costs and have largely passed them on to consumers.
Festive Season Could Bring Relief
Despite the current slowdown, industry experts remain optimistic about demand recovery later this year.
Amit Sharma, Senior Analyst at CyberMedia Research (CMR), said smartphone shipments have declined by around 12-13% over the past three months, with affordable and value-for-money categories facing the greatest pressure.
However, he expects the festive season to encourage consumers to return to postponed purchases. Attractive discounts, exchange offers, and financing schemes could help boost sales during the second half of the year.
Impact on Companies
The trend may affect several listed companies differently.
Electronics distributors and manufacturers that depend heavily on new device sales could face pressure if weak demand continues. On the other hand, companies operating in the refurbished device market may benefit from the shift in consumer preferences.
For now, rising prices remain the key challenge for India’s smartphone and laptop industry. Nevertheless, the upcoming festive season could provide an important opportunity for brands to revive demand and improve sales momentum.