Smartphone prices in India rose 16 per cent on average in the first half of 2026, according to Counterpoint Research, as rising component costs filtered down to buyers.

Memory and chip prices have been climbing for two years, squeezing margins across brands. The trend is visible in launches: Xiaomi's Redmi 17C 5G starts at Rs 20,999, nearly double the price of its predecessor's tier from 20 months ago.

Counterpoint notes OnePlus took a different route on pricing, though the broad direction across the market has been upward.

For buyers, the festive sales this month may be the best window to beat the price climb, with platform discounts and exchange offers cutting effective prices. For brands, higher prices make longer software support, such as Samsung's six-year promise on the new Galaxy A08, a stronger selling point.

Memory prices have been the biggest driver, with shortages pushing up costs for two years running. Brands have responded with fewer RAM options at entry levels and longer software support to justify higher prices.

For the industry, the festive quarter is now the decisive window: if volumes hold despite higher average prices, the value mix shift could cushion margins through 2027.