Market research firm Counterpoint Research said on Tuesday that mobile phone prices in India have increased by an average of 16 percent due to increase in memory cost. The weakness of the rupee has also added to the difficulty. This has made imported parts expensive for local manufacturers. According to Counterpoint Research, the overall smartphone market is expected to decline, but Chinese mobile phone brand OnePlus is an exception as it has raised prices very little. Let us also tell you what kind of reports have come up.

Record sales in the second half

The research firm said smartphone prices in India rose by an average of 16 percent in the first half of 2026, but OnePlus increased its prices by just 8 percent. Rising memory costs have driven up prices, leading to the average selling price of a smartphone in India reaching a record US $318 in Q2 2026. Phones priced below Rs 10,000 saw the biggest increase in prices, which was 32 per cent on average, as memory now accounts for a significant increase in the cost of making these devices.

In the first half (H1) of 2026, sub-Rs. 10,000 segment, shipments were down 65 percent year-on-year, and Rs. The 10,000-15,000 segment, which was earlier one of the largest segments of the market, saw a decline of 20 percent. Rs. Sales of phones priced above 20,000 continued to grow with more launches. Pricing, trade-in offers and no-cost EMIs have contributed, making it easy to buy expensive devices.

OnePlus has not increased the price much

The research firm said AI data centers consume a large share of DRAM and NAND supplies, and a weaker rupee has made imported parts more expensive, leaving most brands with little option but to raise prices in the first half of the year. About 99 percent of mobile phones sold in India are manufactured locally.

According to the firm, most brands passed the bulk of that cost on to buyers, except for OnePlus, which took a different path. The company said OnePlus’ largest single price increase was 12 percent, compared to 113 percent for the rest of the industry. Therefore, this difference remained not only in the case of the average but also in the case of the highest excess. The low increase in prices has not had any adverse impact on growth.

According to Counterpoint Research, in the second quarter of 2026, Rs. OnePlus was the fastest growing brand among the top five brands on online channels with a value of over 20,000. The research firm said OnePlus’ shipments are expected to grow 5 percent year-on-year in the quarter, while the overall market is expected to see double-digit growth. OnePlus stocked up on components earlier in the year and secured memory at an older, lower price before the steep price hike.

What else does the report say?

Tarun Pathak, director of research at Counterpoint Research, said that in the face of such cost shocks, brands generally have to choose between two options: either maintain prices and reduce margins or maintain margins and reduce volumes. OnePlus’ H1 numbers show that it has managed to avoid this situation, mainly because it has secured components in time and its portfolio is large enough to spread the pressure rather than being confined to any one price band. Counterpoint estimates that memory prices are unlikely to decline before 2028, and with import costs also rising due to the rupee, prices are expected to remain under pressure.