Festive sales on Amazon and Flipkart are usually among the best opportunities for Indian consumers to purchase new smartphones at reduced prices. However, the 2026 festive season is presenting a different picture, with reports indicating a decline in smartphone sales despite promotional campaigns.

Rising device prices, smaller discounts and cautious consumer spending are emerging as key reasons behind the slowdown. The contrast with 2025 is particularly noticeable, when festive smartphone sales recorded healthy growth.

1. Smartphone Sales Grew During the 2025 Festive Season

According to Counterpoint Research figures cited in the report, India sold approximately 32.4 million smartphones during the 2025 festive season, representing an 11.5% increase compared with 2024.

Several factors supported this growth. Customers benefited from attractive discounts, bank-card offers, exchange bonuses and easy monthly instalment plans. These deals made it easier for consumers to upgrade their existing devices or purchase smartphones in higher price categories.

The positive shopping environment also encouraged customers to bring forward purchases they might otherwise have postponed.

2. Why Are Smartphone Sales Falling in 2026?

The initial sales figures for 2026 suggest that consumer demand has weakened.

According to the figures cited in the report, online smartphone sales during the Navratri sales period declined by 16% compared with the corresponding period last year. Physical retailers have also reportedly experienced weaker demand, with the All India Mobile Retailers Association indicating a decline of around 20% in store sales since Navratri began.

Counterpoint Research has reportedly projected a 12% decline in smartphone sales across the broader festive season, running from October 8 to November 8, 2026.

These figures cover different periods and should not be treated as directly comparable. The full-season projection is also an estimate, not a final sales result.

3. Smaller Discounts Are Making Phones Less Attractive

One of the main reasons for the slowdown is the reduction in festive discounts.

The report indicates that discounts on some smartphones have fallen from around 25%–40% in the previous festive season to approximately 10%–25% this year. Actual savings vary by model, seller, bank offer and exchange eligibility.

When discounts are smaller, customers may find that the final price is not significantly lower than the regular selling price. This weakens one of the biggest attractions of festive shopping.

Even when advertisements promote substantial savings, buyers increasingly need to compare the final checkout price before deciding whether an offer is worthwhile.

4. Rising Memory Chip Costs Are Pushing Prices Higher

Smartphones rely on memory chips to run applications and store photos, videos and other data. Higher memory costs can increase manufacturing expenses, particularly for devices offering larger RAM and storage configurations.

Demand for memory from AI-related infrastructure and data centres has also contributed to pressure in parts of the memory market. However, the impact varies by memory type, supplier and contract.

Currency movements and transportation expenses can add further costs for manufacturers and importers.

When these expenses rise, smartphone companies may increase prices or reduce the discounts they can afford to offer. As a result, consumers may end up paying more for a comparable device than they did during the previous festive season.

5. Consumers Are Repairing Old Phones Instead of Upgrading

Higher prices and reduced discounts are encouraging some customers to delay smartphone purchases.

Rather than replacing a device that still works reasonably well, consumers may choose to replace its battery, repair the display or continue using it for another year.

Other buyers are considering more affordable models or second-hand smartphones. Customers who rely on instalment plans may also become more cautious when monthly household expenses leave less room for discretionary spending.

This behaviour can have a direct impact on sales because consumers are no longer treating the festive season as an automatic opportunity to upgrade.

6. How Can Market Revenue Rise When Fewer Phones Are Sold?

A decline in the number of smartphones sold does not necessarily mean that the market's total revenue will fall.

The report suggests that while smartphone unit sales could decline by 12% over the 2026 festive season, the market's overall value could increase by approximately 5%. This would indicate that the average selling price of smartphones is rising.

For example, a market selling fewer devices can still generate more revenue if customers spend substantially more on each phone.

However, higher revenue does not automatically mean higher profits. Manufacturers and retailers must also account for component costs, logistics, promotional expenses and other operating costs.

7. Will Smartphone Sales Recover Before Diwali?

Diwali promotions could provide another opportunity for brands and retailers to attract customers. Additional bank discounts, exchange bonuses, price cuts and no-cost EMI offers may encourage some buyers to make a purchase.

The extent of any recovery will depend on whether these deals deliver meaningful savings. If smartphone prices remain high and consumers continue prioritising essential expenses, sales may remain under pressure.

The final results for the full festive season will provide a clearer picture of whether the early slowdown continued through Diwali.

Conclusion

The difference between the 2025 and 2026 festive seasons highlights how sensitive smartphone demand can be to prices and consumer confidence. While sales grew strongly in 2025, preliminary figures for 2026 indicate that higher device costs and weaker discounts are making buyers more cautious.

For consumers, the best approach is to compare prices across sellers, verify bank and exchange offers, and consider whether upgrading is necessary. For smartphone manufacturers, restoring demand may require more competitive pricing and genuine savings rather than relying on festive advertising alone.