Inside India newsletter: Chip squeeze hits Chinese smartphones in India as Apple, Samsung gain an edge
Rising memory chip costs are reshaping the world's second-largest smartphone market as Chinese brands become expensive, improving the value proposition for Samsung and Apple.
TL;DR
- Rising memory chip costs are forcing Chinese smartphone brands in India to increase prices, potentially from under $150 to $200-$250.
- This price increase diminishes the value proposition of Chinese smartphones for price-sensitive Indian consumers.
- Mid-market and premium brands like Samsung and Apple are benefiting from this shift, with Apple's iPhone 17 remaining the top-shipped device.
- Smartphone shipments in India dropped in the first half of 2026, with the entry-level tier experiencing a steep decline.
- Chinese brands like Vivo, Oppo, Xiaomi, and Realme saw significant shipment declines, while OnePlus reported a smaller decrease.
- Samsung and Apple were the only major names to hold steady and gain share, with their shipments rising slightly in the June quarter.
- Samsung's market share increased, narrowing the gap with leading seller Vivo, while Apple's market share also rose.
- Samsung benefits from in-house memory chip supply, unlike many Chinese firms that rely on external suppliers.
- Memory chip prices have increased fourfold since September 2025 and are expected to rise further.