Smartphone Prices in India May Rise Another 10–15 Percent in 2026 Amid Cost Pressures: Report

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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Also Read: Rising Component Costs Threaten India’s Entry-Level 5G Smartphone Segment

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.