
India's smartphone market is facing a major crisis just as the festive shopping season gathers momentum. Smartphone shipments have plunged 20% in Q3 2026, marking the third consecutive quarter of declining sales, according to Counterpoint Research. With handset prices rising around 21% this year and budget smartphones becoming significantly more expensive, consumers are increasingly struggling to afford new devices. Even festive discounts may not be enough to revive demand. The crisis extends far beyond India. Global smartphone shipments have fallen sharply, with major brands including Samsung, Apple, Xiaomi, Oppo and Vivo facing declining volumes. What's driving this unprecedented slowdown? The artificial intelligence boom has triggered a massive surge in demand for memory chips, pushing up manufacturing costs. The Gulf conflict, supply chain disruptions and currency pressures are adding to the challenge. Watch this Business Today TV report to understand why smartphones are getting costlier and what lies ahead for buyers and manufacturers.