India’s smartphone market witnessed a major shift during the second quarter of 2026, with the average launch price of new smartphones rising by nearly 69% compared to the same period last year. The increase reflects a growing focus on premium devices, artificial intelligence features, and higher-end specifications, even as manufacturers continue to expand their presence in the affordable segment.
The trend highlights how smartphone brands are increasingly prioritising value-added features over aggressive budget pricing.
Premium Smartphones Drive The Market
The average launch price of smartphones reached around ₹35,990 during the April-June quarter, marking a significant jump over Q2 2025. Rather than flooding the market with entry-level devices, brands introduced more premium models equipped with advanced processors, AI capabilities, improved cameras, and flagship-grade displays.
Manufacturers also launched multiple storage and RAM variants of the same model to cater to different price segments.
5G And AI Become Standard
Most smartphones launched during the quarter featured 5G connectivity and high-refresh-rate displays, showing that features once considered premium are now becoming standard across new devices.
Artificial intelligence also emerged as a major selling point, with brands highlighting AI-powered photography, productivity tools, battery optimisation, and personal assistant features to attract buyers.
Made-In-India Reaches New Milestone
One of the biggest achievements for the industry was the expansion of domestic manufacturing. Nearly 99% of smartphones launched during the quarter were manufactured in India, reflecting the success of the country’s electronics manufacturing initiatives and reducing dependence on imports.
The strong local manufacturing ecosystem has also enabled brands to respond more quickly to market demand.
More Variants, Fewer New Models
While the number of smartphone launch entries nearly doubled compared to last year, much of this growth came from multiple variants of existing models rather than entirely new devices.
Companies are increasingly offering the same smartphone with different RAM and storage configurations, allowing them to cover a wider range of price points without developing entirely new products.
What It Means For Buyers
Consumers can expect better technology and more AI-powered features, but they may also need to spend more to access the latest smartphones. At the same time, the growing availability of locally manufactured devices could help improve after-sales support and product availability across the country.
Summary
India’s average smartphone launch price increased by nearly 69% in Q2 2026 as brands focused on premium devices with AI features, 5G connectivity, and higher-end specifications. At the same time, domestic manufacturing reached 99% of new launches, highlighting the success of India’s electronics production ecosystem and the growing shift towards premium smartphones.
