The All India Cellular Retailers Affiliation (AIMRA) has cautioned that smartphone costs in India might rise by one other 10–15 p.c in 2026, following an estimated 10 p.c enhance this 12 months, pushed by rising reminiscence element prices and protracted USD–INR forex fluctuations. The affiliation stated the mounting value pressures have created an unsustainable setting for smartphone producers, in keeping with a report by The Hindu dated December 27, 2025.
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Rising Prices Drive Value Hikes
“We’re witnessing a shift the place element prices are now not secure,” stated Kailash Lakhyani, Chairman of AIMRA, in keeping with the report. He famous that main smartphone manufacturers together with Xiaomi, Realme, Vivo and Oppo have already raised costs on fast-selling fashions.
Main Manufacturers Reply
“Main manufacturers like Xiaomi, Realme, Vivo, and Oppo have already been compelled to hike costs on fast-selling fashions. Whereas some manufacturers have elevated the MRP straight, others are hitting shoppers not directly by withdrawing financial institution cashbacks, ending zero-interest EMI schemes, and reducing again on retail sell-out assist,” Lakhyani reportedly added.
Based on the report, the AIMRA Chairman had met world tech leaders in Hong Kong, together with the VP of Xiaomi and the CEO of Realme, the place issues had been raised over the way forward for the Indian smartphone market.
Retail Sector Feels the Pressure
AIMRA stated the affect on the mainline retail market has been extreme, with shopper footfall declining sharply since Diwali. December gross sales are trending decrease than these in November and September, in keeping with each AIMRA and the Organised Retailers Affiliation (ORA), forcing a number of small and enormous retailers to fund workers salaries and retailer leases out of their very own pockets as gross sales dry up.
The affiliation stays cautiously optimistic that upcoming smartphone launches in January 2026, together with the Xiaomi Notice sequence, Oppo Reno sequence, and Realme 16 sequence, might assist revive shopper curiosity. Nevertheless, it warned that the broader outlook stays difficult.
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Outlook for 2026
“2026 is shaping as much as be the hardest 12 months on report for OEMs, NBFCs, distributors, and retailers alike,” Lakhyani reportedly stated.
“We anticipate a drop in unit quantity, even when the whole market worth seems to rise resulting from larger value tags. The survival of the ecosystem will rely closely on how manufacturers handle their EMI gives, advertising and marketing assist, and shopper incentives within the coming months,” he concluded, as talked about within the report.
