Indian Smartphone Shipments Drop 10% Amid AI Memory Demand Shift, Largest Decline in 6 Years

India's smartphone market is experiencing sharp decline due to rising memory prices driven by AI data center demand. According to TechCrunch, smartphone shipments in India fell 10% year-over-year in Q2, the biggest drop since 2018. The shift in memory supply toward high-bandwidth memory production by Samsung, SK Hynix, and Micron has tightened availability and increased prices for mainstream devices. While China saw only a 2% decline, India's 10% drop is exacerbated by its reliance on budget smartphones, where memory cost increases directly impact pricing. Consumers are delaying replacements, extending replacement cycles to 3.5-4 years, while premium brands like Apple and Samsung face lesser impacts. However, budget segments suffer significantly, with shipments under ₹15,000 dropping 45% year-over-year. OnePlus is shifting focus, reducing India's share from 30% to 19% while increasing China's share to 74%. Smartphone prices in India have risen 4-68% depending on models, driving consumers toward used markets. IDC predicts double-digit shipment declines for Q2, with memory shortages and high prices potentially lasting until late 2027.