Nothing emerges as one of India's fastest-growing smartphone brands: Counterpoint

London-based smartphone startup Nothing has emerged as one of the fastest-growing mobile brands in India, according to fresh data from Counterpoint Research. The finding comes at a time when the broader Indian smartphone market is grappling with a sharp downturn.

India's overall smartphone shipments fell 10% in the second quarter of 2026, marking the steepest June-quarter decline in six years. The mass-market mobile segment, typically defined as devices priced under Rs 10,000, saw a staggering 45% year-on-year drop.

Nothing's rise in a shrinking market

Counterpoint's report does not disclose Nothing's exact shipment numbers or market share. But being named among the fastest-growing brands in a shrinking market signals that the company has managed to carve out a niche.

Nothing, founded by OnePlus co-founder Carl Pei, launched its first smartphone, the Phone (1), in mid-2022. Since then, the brand has expanded its lineup with the Phone (2) and more recently, the mid-range Phone (3a) series. The company's focus on distinctive design — transparent backs with LED glyph interfaces — has helped it stand out in a crowded field.

Industry analysts point to Nothing's appeal among younger, tech-savvy consumers in urban India. The brand has also built a loyal community through its open-beta software approach and regular over-the-air updates.

Broader market slump

The 10% quarterly drop in India's smartphone shipments reflects multiple headwinds. A global memory chip crunch has disrupted supply chains, pushing up component costs. The Economic Times reported that global smartphone shipments in the second quarter hit their lowest level in 13 years, partly due to the same chip shortage.

India's mass-market mobile segment has been hit especially hard. The 45% year-on-year decline suggests that budget-conscious consumers are either delaying upgrades or switching to cheaper feature phones. The trend mirrors a broader shift: premium demand is rising even as budget sales collapse.

ET BrandEquity noted that sales of budget smartphones and TVs have dropped as more consumers opt for higher-end devices. This polarisation — premium thriving, budget struggling — is reshaping the Indian electronics market.

What rising premium demand means

While the mass market shrinks, the premium segment (phones priced above Rs 30,000) is seeing increased traction. Apple, Samsung, and OnePlus continue to lead in this space. Nothing's Phone (2) and Phone (3a) series sit in the upper mid-range and premium categories, which may explain its growth even as the overall market contracts.

Counterpoint's data suggests that consumers who can afford to spend are spending more, often on devices that offer distinct features or ecosystem benefits. Nothing's integration with smart home devices and its growing accessory lineup — including audio products — gives it a foothold in this trend.

What to watch

Nothing is expected to launch its next flagship device later this year. The company will need to navigate continuing supply chain pressures and intensifying competition from Chinese rivals like Xiaomi and vivo, which dominate the Indian market. Whether Nothing can sustain its growth trajectory will depend on its ability to scale production, manage costs, and keep its community engaged.