New Delhi, Oct 7 (SocialNews.XYZ) India’s smartphone market volumes during the 2026 festive season are expected to moderate about 12 per cent year‑on‑year even as market value rises roughly 5 per cent, as higher memory costs push device prices up, a report said on Wednesday.
The report from Counterpoint Research said the market value surge is driven by higher Average Selling Prices and consumers continuing to spend selectively on higher-value smartphones through financing and trade-ins.
Elevated memory costs, particularly for DRAM and NAND, have led to multiple rounds of price increases that are weighing on consumer demand and lengthening replacement cycles. Mainline channel footfalls are expected to pick up during the festive season, but conversion will depend heavily on the attractiveness of financing, trade-ins and promotional offers.
With cost pressures limiting OEMs’ ability to offer deep discounts, the festive season is likely to be shaped less by aggressive price cuts and more by affordability-led strategies, including financing, trade-ins, optimised product mixes and value-focused offerings.
“The key challenge this festive season will be the size of the active consumer pool. Higher smartphone prices are likely to keep many consumers on the sidelines, with discretionary upgrades being deferred and purchases increasingly driven by replacement needs," said Research Director Tarun Pathak.
Meanwhile, consumers who are already planning to purchase a new smartphone may find the festive season a relatively attractive buying window, as continued increases in memory costs could lead to further price hikes.
The report forecasted consumers to be more selective and look for the right combination of financing, trade-in benefits and value, rather than upgrading simply because of festive discounts.
“This will make the festive season more competitive for brands, as they will be competing for a smaller pool of active buyers,” Pathak said.
Consumer activity is expected to pick up across both online and mainline channels during the festive season, with mainline retail likely to see stronger footfalls, the report noted.
—IANS
aar/pk
Source: IANS
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