The All India Mobile Retailers Association (AIMRA) has cautioned that smartphone prices in India could rise by another 10–15 percent in 2026, following an estimated 10 percent increase this year, driven by rising memory component costs and persistent USD–INR currency fluctuations. The association said the mounting cost pressures have created an unsustainable environment for smartphone manufacturers, according to a report by The Hindu dated December 27, 2025.
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Rising Costs Drive Price Hikes
“We are witnessing a shift where component costs are no longer stable,” said Kailash Lakhyani, Chairman of AIMRA, according to the report. He noted that leading smartphone brands including Xiaomi, Realme, Vivo and Oppo have already raised prices on fast-selling models.
Major Brands Respond
"Leading brands like Xiaomi, Realme, Vivo, and Oppo have already been forced to hike prices on fast-selling models. While some brands have increased the MRP directly, others are hitting consumers indirectly by withdrawing bank cashbacks, ending zero-interest EMI schemes, and cutting back on retail sell-out support," Lakhyani reportedly added.
According to the report, the AIMRA Chairman had met global tech leaders in Hong Kong, including the VP of Xiaomi and the CEO of Realme, where concerns were raised over the future of the Indian smartphone market.
Retail Sector Feels the Strain
AIMRA said the impact on the mainline retail market has been severe, with consumer footfall declining sharply since Diwali. December sales are trending lower than those in November and September, according to both AIMRA and the Organised Retailers Association (ORA), forcing several small and large retailers to fund staff salaries and store rentals out of their own pockets as sales dry up.
The association remains cautiously optimistic that upcoming smartphone launches in January 2026, including the Xiaomi Note series, Oppo Reno series, and Realme 16 series, may help revive consumer interest. However, it warned that the broader outlook remains challenging.
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Outlook for 2026
“2026 is shaping up to be the toughest year on record for OEMs, NBFCs, distributors, and retailers alike,” Lakhyani reportedly said.
“We expect a drop in unit volume, even if the total market value appears to rise due to higher price tags. The survival of the ecosystem will depend heavily on how brands manage their EMI offers, marketing support, and consumer incentives in the coming months,” he concluded, as mentioned in the report.
