Retailers reported that mobile device sales in May fell by a record 30–35 per cent compared with the same month a year earlier. This decline follows a period in which companies have been increasing prices every month since November 2025 to counter the escalating cost of memory chips.
Counterpoint Research reports that shipments declined by 15–20 per cent year-on-year in May, with a similar decrease expected in June. Currently, offline sales by retailers represent a significant 60 per cent of the total, with the remainder coming from online channels.
Overall, the combined drop in sales across both offline and online segments is projected to be very steep. The drop in mobile phone is expected to be in double digits of over 15%, after 3% drop in mobile shipments in Q1of 2026.
The primary factor is the ongoing rise in prices — the average cost of smartphones increased by 20 per cent between January and May, on top of last year’s hike, as per the Counterpoint.
Retailers say that, in some instances, the overall increase since prices were first raised has reached as much as 40-45 per cent.
The retailers’ association has been working to stabilise mobile phone prices. For instance, it has engaged in discussions with smartphone manufacturers, encouraging them to remove chargers from the standard box contents.
They argue that, since leading brands like Apple Inc, Samsung, and Nothing have already implemented charger-free packaging, consumers have become familiar with this practice.
The association has also reached out to the government, seeking a reduction in the goods and services tax (GST) on the product from 18 per cent to 5 per cent to help it adjust with a steep decline in sales. Its previous request to exempt phones priced below ₹10,000 from GST has still remained unheard.
