Inside India newsletter: Chip squeeze hits Chinese smartphones in India as Apple, Samsung gain an edge

Rising memory-chip costs are squeezing low-cost Chinese smartphone makers in India, forcing price increases of up to 40% in the sub-$150 segment and weakening their value proposition. As a result, consumers are shifting toward mid-range and premium phones, benefiting Apple and Samsung. India smartphone shipments fell 7.9% year over year in the first half of 2026 to 64.2 million units, but market value rose 3.6% as average selling price hit a record $315. Apple’s iPhone 17 remained the top-shipped device for two straight quarters, while Samsung and Apple gained share as Vivo, Oppo, Xiaomi and Realme lost ground. The article points to a broader premiumization trend in India’s handset market driven by chip shortages and improving financing options.