Rising Chip Costs Erode Chinese Smartphone Market Share in India

Rising memory chip costs are eroding the market dominance of budget Chinese smartphone brands in India, shifting consumer demand toward premium competitors. Memory chip prices have increased fourfold since September 2025, forcing manufacturers to raise prices in the sub-$150 category by up to 40%. New budget models now cost between $200 and $250, diminishing the value proposition for price-sensitive Indian consumers.

Samsung Electronics and Apple have gained market share as a result of these price hikes. The iPhone 17 remained the top-shipped device for the first half of 2026. While Samsung benefits from an in-house chip supply, Chinese firms have struggled after unsustainable shifts to alternative suppliers like UNISOC and CXMT, the latter of which has diverted resources toward AI and data center markets.

Chinese manufacturers saw a steep decline in shipments during the June quarter. Realme shipments crashed by 14.2%, while Vivo experienced a 13.9% decline. Xiaomi and Oppo also saw drops in shipments of 10% and 8.5%, respectively.