Chinese smartphone brands lose ground in India as June-quarter shipments post steepest fall in six years

India's smartphone market hit a rough patch in the June quarter, with shipments recording their steepest decline in six years. Chinese brands, which have long dominated the budget and mid-range segments, bore the brunt of the slowdown.

According to data from Counterpoint Research, overall smartphone shipments in India fell 10% year-on-year in the quarter ending June 2026. This marks the worst performance for the April-June period since 2020, when the pandemic-induced lockdowns disrupted supply chains and consumer spending.

Mass-market segment takes a hit

The sharpest contraction came from the mass-market segment—phones priced below ₹15,000—which slumped 45% compared to the same quarter last year. This category has historically been the stronghold for Chinese brands such as Xiaomi, Realme, and Vivo.

Industry analysts attribute the drop to a combination of factors. Rising input costs and inflation have pushed up retail prices, making budget phones less affordable. At the same time, consumers are holding on to their devices longer, delaying upgrades as economic uncertainty lingers.

“The mass market is under severe stress,” a senior analyst at Counterpoint told Moneycontrol. “Buyers are either deferring purchases or moving to cheaper refurbished devices. This has hit Chinese brands hardest because their portfolio is heavily skewed toward this segment.”

Chinese brands lose share

Chinese smartphone makers have seen their combined market share in India erode over the past year. While they still account for a majority of shipments, the gap is narrowing as domestic and alternative players gain ground.

Xiaomi, once the undisputed leader in India, has slipped to third place behind Samsung and Vivo. Realme and Oppo have also reported declining volumes. The regulatory crackdown on Chinese companies—including tighter scrutiny of investments and tax investigations—has added to the uncertainty.

“Consumer sentiment towards Chinese brands is cooling,” said a Mumbai-based retail analyst. “Government policies and geopolitical tensions are making buyers think twice. But the bigger story is simply that the market is shrinking.”

Google Pixel and Nothing buck the trend

Not all brands are struggling. Google Pixel and Nothing have emerged as the fastest-growing smartphone brands in India, according to Counterpoint's report. Both have carved out niches in the premium and upper-mid segments.

Google’s Pixel series has gained traction with photography enthusiasts and stock-Android fans, while Nothing’s transparent-design phones have become a status symbol among younger buyers. Both brands have expanded their offline presence and marketing spend.

“The growth of Pixel and Nothing shows that Indian consumers are willing to pay more for differentiated products,” the Counterpoint analyst noted. “But these volumes are still small compared to the mass market. They can’t offset the overall decline.”

What happens next

The June quarter slump has raised concerns about the health of India's smartphone ecosystem. The upcoming festive season—typically a strong sales period—will be a key test. Brands are expected to offer deep discounts and aggressive financing schemes to lure buyers back. But with the mass market in retreat, the road to recovery may be longer than many anticipated.