Mobile phone sales volumes are estimated to have declined 12-15% year-on-year in June, while laptop sales are expected to be down 16-18%, according to distributor checks and industry data from IDC, Counterpoint and CyberMedia Research (CMR).
The weakness comes amid sharp increases in device prices, especially in entry-level categories.
Average selling prices of smartphones have risen more than 20% between January and June 2026, while laptop prices have increased by 15-25% during the same period. Industry executives expect prices to remain elevated through 2027 as component shortages persist.
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Counterpoint and IDC data for the first quarter of 2026 show a clear shift in consumer behaviour. Smartphones priced below Rs 10,000 witnessed a sharp 42% decline in shipments after manufacturers raised prices in the entry-level segment.
Consumers increasingly moved towards devices in the Rs 10,000-Rs 20,000 bracket, which recorded 6% growth. Premium devices priced above Rs 30,000, including upper mid-range and flagship models, posted the strongest growth of around 10%.
Higher prices are also boosting demand for refurbished devices. Distributors said second-hand smartphones and laptops are drawing increased interest from value-conscious consumers. Demand for new devices, however, is expected to improve during the festive season when brands typically roll out discounts and financing offers.
Amit Sharma, Senior Analyst - Industry Intelligence Group (IIG), CMR said, "CMR's market checks also suggest smartphone shipments have declined by 12-13% over the last three months, with the affordable and value-for-money segments bearing the brunt of weakening consumer demand."
"While pricing pressures are likely to persist in the near term, the festive season could provide a much-needed demand boost as consumers return to deferred purchases, aided by attractive offers and financing schemes. We also expect the refurbished smartphone market to benefit, as price-conscious consumers increasingly seek lower-cost alternatives to new devices."
The key reason behind the increase in prices is the sharp jump in memory costs. RAM prices have surged nearly fourfold since December 2025 amid supply shortages. Analysts attribute the tightness to strong demand from artificial intelligence applications and data centres, which are consuming a larger share of global chip capacity.
A stronger dollar against the rupee has further raised import costs, while the recent Gulf conflict has increased freight charges and disrupted supply chains.
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Memory costs form a significant portion of device manufacturing expenses.
Analysts estimate that RAM accounts for nearly 45% of smartphone production costs, while memory contributes around 35-38% of laptop manufacturing costs. The sustained rise in these components has limited manufacturers' ability to absorb costs, forcing them to pass on price increases to consumers.
The pricing pressure could have implications for listed companies. Analysts see the trend as negative for Redington which is a key distributor of Apple products, and Dixon Technologies, where mobile phones contribute nearly 80% of revenue. On the other hand, GNG Electronics, which sells refurbished laptops and smartphones, could benefit as consumers increasingly turn to second-hand devices.
Industry executives, however, expect demand for first-hand devices to recover during the festive season, supported by replacement demand and promotional offers.
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