Why Apple Slipped Out Of India's Top Five Smartphone Brands This Quarter

For the first time in more than four years, Apple's iPhone shipments into India have fallen. The decline, reported in a 17 July supply chain analysis by market research firm Counterpoint Research, came during the April-June quarter this fiscal and marks an unusual stumble for a market Apple has long counted on for growth.

Counterpoint found that iPhone shipments dropped 3% year-on-year (YoY) during the quarter, even though demand for the devices remained strong. The reason, according to the report, was a shortage of the iPhone 17 series, which limited how many units retailers could get their hands on. The shortfall was enough to push Apple out of India's top five smartphone brands for the quarter, a spot it has typically held in recent years.

A Market Under Pressure

Apple's dip did not happen in isolation. India's overall smartphone market had a rough quarter too, with retail shipments falling 10% YoY, the steepest June-quarter decline in six years, according to Counterpoint. Brands tried to soften the blow with discounts and financing offers, but weak consumer demand and mounting economic pressures made it a difficult few months for the industry as a whole.

Much of the pain traces back to memory chip prices, which hit record highs during the quarter. To cope, manufacturers raised prices across nearly every price band, and average smartphone prices climbed by around 15% by the end of the quarter, Counterpoint said.

Budget phones bore the brunt of it. Shipments in the sub-₹15,000 segment fell 45% YoY, and Chinese smartphone brands, which rely heavily on entry-level and mid-range devices, saw their combined market share slip to its lowest point for a second calendar quarter since 2020. Some brands have responded by leaning more on 4G models to keep prices accessible while they wait for component costs to settle.

Apple's Balancing Act On Price

The timing is awkward for Apple, which has been leaning on India as one of its fastest-growing markets. As recently as 30 April, outgoing chief executive Tim Cook said India's performance had left him "over the moon excited."

So far, Apple has protected the iPhone, its most important product line, from price hikes even as it raised prices on Macs and iPads on 25 June. But Cook has hinted that iPhones will not be spared forever. In an interview with The Wall Street Journal on 17 June, he said a price increase, even for iPhones, would eventually be "unavoidable."

For retailers already dealing with tight iPhone supply, that possibility adds another layer of uncertainty to what has been one of the few dependable growth categories in India's consumer electronics business.

Apple Pushes Suppliers To Cut Display Costs

Notably, to offset the pressure from rising memory prices, Apple is asking its display suppliers to lower costs for the OLED panels used in the upcoming iPhone 18 Pro Max, according to a report by The Elec. The report said Apple has proposed paying around $70 per OLED panel for the device.

Samsung Display and LG Display are expected to supply these panels at an average price of about $66.50 each, roughly 20% lower than what they charged for the iPhone 17 Pro Max, the report said.

This is part of a pattern rather than a one-off move. OLED panel prices for iPhones have declined with each new generation, The Elec noted. The iPhone 16 Pro Max's panels reportedly cost more than $100 each, while prices for the iPhone 17 Pro Max fell to around $80.

Lower prices do not necessarily mean a lesser display, however. The iPhone 18 Pro series is expected to use Samsung Display's new M16 OLED material, which is said to bring improvements in brightness, lifespan and colour reproduction.

The report cited an unnamed industry official explaining Apple's approach. "Apple is demanding steep price cuts from panel suppliers on the grounds of rising memory prices," the official said. "Supply prices are falling even for high-specification products using the latest organic materials, so panel makers' second-half earnings will vary depending on supply volumes, yields and the extent of cost reductions."

Citing market research firm UBI Research, The Elec reported that Samsung Display is expected to supply around 46 million OLED panels for the iPhone 18 series this year, while LG Display is expected to ship close to 41.09 million panels, with most going into the Pro and Pro Max models.

What Comes Next

Looking at the year ahead, research firms International Data Corp (IDC) and Counterpoint expect India's overall smartphone sales to decline by 12-15% in 2026. That could make it the weakest year for the $43-billion market since before the Covid-19 pandemic.

Apple itself is expected to do slightly better. IDC and Counterpoint project the company will sell 15 million iPhones in India this calendar year, up from 14 million in 2025. Still, that marks a sharp slowdown from the pace Apple is used to. Since 2019, its iPhone sales in India have grown tenfold, at an annualised rate of 33%.

The broader market tells a different story. Shipments across India are expected to fall by as much as 15% this year, to around 130 million units, the lowest since 2018. The market peaked at 161 million units in 2021, and the slide has been building since then. The reports cited analysts who said that point to longer replacement cycles, limited hardware innovation, inflation and general economic uncertainty are reasons behind the slowdown, with rising supply chain costs expected to add further pressure on prices this year.

Not every part of the market is struggling, though. The ultra-premium segment, phones priced above ₹45,000, held up relatively well, helped by financing schemes that made it easier for buyers to afford them upfront.

Who's Winning, Who's Losing

Among individual brands, vivo, excluding its sub-brand iQOO, held on to the top spot with an 18% market share, thanks to strong demand for its V70 series, even as its cheaper models struggled after repeated price hikes.

Samsung came in second and was the only brand among the top five to grow, posting a 2% YoY increase. Counterpoint credited healthy demand for the Galaxy A series and flagship S-series phones, along with aggressive seasonal promotions.

OPPO followed in third place with a 14% share, ahead of Xiaomi, including its POCO sub-brand, at 13%. realme rounded out the top five. Both Xiaomi and realme saw shipments decline, which the report linked to repeated price hikes denting demand in the sub-₹20,000 category.

Outside the top five, Nothing stood out as India's fastest-growing smartphone brand, posting 105% YoY growth on the back of its Phone (4a) lineup and its sponsorship of the Royal Challengers Bengaluru during the IPL. Google Pixel, meanwhile, recorded the highest growth in the ultra-premium segment, up 68% YoY.

Counterpoint expects India's smartphone market to shrink 13% for the full year, and has cautioned that rising memory prices will continue to squeeze affordability through the rest of 2026.