Chinese smartphone brands are losing ground in India as rising memory chip prices put pressure on manufacturers and weaken demand for affordable devices. Their combined market share fell to its lowest level in more than eight years in the July-September quarter, according to data from market research firms Omdia and Counterpoint Research.
Omdia data showed Chinese brands held 68% of India's smartphone market in the third quarter of 2026, down from 71% in the previous quarter and 75% a year earlier. Counterpoint Research recorded a similar decline, putting their combined share at 67%, the lowest since the first quarter of 2019.
The surge in memory chip prices has forced Chinese manufacturers, including Vivo, Oppo and Xiaomi, to reconsider their strategies in India's price-sensitive market.
These brands have traditionally relied on affordable smartphones to drive sales. However, higher component costs have prompted manufacturers to reduce the number of budget models and focus more on mid-range and premium devices, where margins can be stronger.
The shift comes as consumers face higher handset prices and increasingly delay replacing their existing phones. The pressure on affordability has created challenges for brands that have historically depended on high sales volumes.
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The difficulties faced by Chinese manufacturers have created opportunities for domestic players such as Lava and Ai+. Indian brands are maintaining their product line-ups as they attempt to attract price-conscious buyers ahead of the Diwali shopping season.
According to Counterpoint Research, Indian smartphone brands collectively increased their market share from 2% a year ago to 7% in the quarter ended September 30, 2026. This was their highest combined share since October-December 2018.
Tarun Pathak, research director at Counterpoint Research, said Ai+ and Lava accounted for nearly 95% of the Indian brands' combined share. Newer entrants, including Mivi and Boltt, have also entered the market.
The broader market has also come under pressure. India's smartphone shipments declined by 20-26% year-on-year in the July-September quarter to 35.8 million units, marking a decade low.
Higher memory costs have pushed up prices, while cautious consumer spending has led many buyers to postpone upgrades. The slowdown presents challenges for manufacturers as they balance rising production expenses with demand for affordable devices.
For Chinese brands, rebuilding market share will depend on how effectively they respond to higher component costs while remaining competitive in India's increasingly challenging smartphone market.