India’s Diwali Smartphone Sales Drop 20% Amid Rising Prices
India’s offline smartphone market witnessed an 18–20% decline in sales volumes during the 2026 Diwali festive season, as rising handset prices discouraged budget-conscious consumers from upgrading their devices. According to the All India Mobile Retailers Association (AIMRA), many shoppers visited physical stores but left without making purchases, with demand particularly weak in the affordable smartphone segment. Some consumers chose to continue using their existing phones or consider refurbished alternatives.
Higher memory chip and component costs pushed smartphone prices upwards, while inconsistent festive discounts and price differences between online and offline platforms further affected sales. Retail chains with older inventory offered discounts of around 12–15%, putting smaller independent retailers at a disadvantage. Nearly 60% of festive smartphone purchases were reportedly made through EMIs, highlighting consumers’ growing reliance on instalment payments to manage higher costs.
Brand performance varied, with Realme reporting an offline sales decline of over 50% in several regions. Meanwhile, Apple, Motorola and Xiaomi recorded healthier demand, particularly in the ₹30,000–₹60,000 segment. Older iPhone models and premium devices also attracted buyers. AIMRA has warned that offline smartphone sales could decline by up to 50% over the next three months as festive demand weakens, calling for consistent pricing across online and offline channels and more affordable 5G smartphones.
Pic courtesy: google/ images are subject to copyright
