Buying Smartphones Just Got Costlier as Prices Jump 7.9% in First Five Months of 2026

India’s smartphone market has entered a new pricing phase after a year of largely stable prices, with average handset prices rising 7.9% between January and May 2026, according to a study released by market research firm Techarc.

The study tracked monthly retail prices of 165 smartphone models launched in 2025 across 22 brands and found that prices moved little through last year before turning sharply upward in 2026. Techarc said the shift marks a break from the discount-driven market that consumers had grown accustomed to.

“2025 was the year of the discount – buyers who waited were rewarded with stable or falling prices. 2026 has flipped that completely,” said Faisal Kawoosa, chief analyst and co-founder at Techarc.

Budget Phones See Biggest Increase

According to the study, phones priced below ₹10,000 recorded the sharpest increase, with average prices rising 17.6% in the first five months of 2026. Devices in the ₹10,000-20,000 segment saw prices rise 13.9%.

The increase was less pronounced in higher-priced categories. Premium smartphones priced above ₹50,000 continued to witness price cuts, although the declines were smaller than in previous periods.

Techarc said memory costs account for a larger share of overall production expenses in budget devices, making lower-priced phones more vulnerable to component cost increases.

Price Rise Spreads Across Segments

The study found that the pricing trend is no longer limited to entry-level smartphones. The ₹20,000-30,000 segment, which saw prices fall 1.6% during 2025, recorded a 5.6% increase in the first five months of this year.

Price hikes also became more widespread across brands. Budget-focused players such as Acer, Ai+, Redmi, CMF, Infinix and Poco registered some of the sharpest increases, while Xiaomi, Itel and Alcatel were among the few brands that lowered prices. Apple’s pricing remained broadly stable.

“The pressure is landing exactly where buyers can least afford it,” Kawoosa said, adding that the upward movement in mid-range devices suggests the increase is “climbing the price ladder”.

Techarc expects the higher pricing levels in budget and entry segments to remain in place even if component costs ease, and will monitor whether the trend extends further into mid-range and premium categories during the rest of 2026.