India’s 4G smartphone market is expected to see renewed demand as rising component costs push up the prices of 5G devices and make affordable 4G phones more attractive to budget-conscious consumers.Industry data shows that 4G smartphones are already gaining share in India’s entry-level and mass-market segments, even as overall smartphone shipments decline amid higher memory and component prices.Key HighlightsIndia’s 4G smartphone shipments are expected to grow as price pressure affects the 5G segment.4G smartphones accounted for 12% of India’s smartphone shipments in Q2 2026, up from 7% in Q4 2025.4G shipments increased 40% quarter-on-quarter in Q2 2026, according to Counterpoint.The average selling price of 5G smartphones was significantly higher than 4G devices.Rising DRAM and NAND prices are pushing smartphone prices higher.Smartphone makers are expanding their 4G portfolios in the budget segment.Why Are 4G Smartphones Gaining Ground?The revival of 4G smartphones is closely linked to affordability.Counterpoint Research reported that India’s overall smartphone shipments declined 10% year-on-year in Q2 2026, while several manufacturers expanded their 4G portfolios in the mass-market segment to address changing consumer demand.The research firm said 4G will continue to play an important role among value-conscious consumers until component costs stabilise.The trend is particularly visible in smartphones priced below ₹15,000, where rising prices are making consumers more cautious about upgrading to newer devices.Price Gap Between 4G and 5G PhonesThe widening price difference between 4G and 5G smartphones is another factor supporting demand for 4G devices.According to data cited by Business Standard from IDC, the average selling price of a 5G smartphone was around 1 in Q2 2026, compared with 9 for a 4G smartphone. While 4G phone prices also increased sharply, the absolute price gap remains significant for budget buyers.This makes 4G smartphones an option for consumers who need basic smartphone features but are not willing or able to pay the premium for 5G connectivity.Memory Costs Push Smartphone Prices HigherThe smartphone market is facing pressure from sharply higher memory costs.Counterpoint said smartphone memory prices had increased nearly four times since September 2025 and could rise further. DRAM and NAND costs have increased their share of the bill of materials for mass-market smartphones from below 20% to more than 45%.These higher component costs have resulted in multiple price increases across smartphone portfolios in India.Counterpoint expects the Indian smartphone market to remain under pressure through the rest of 2026, with affordability becoming one of the biggest challenges for consumers and manufacturers.4G Smartphone Shipments Rise in Budget SegmentCounterpoint data shows that 4G smartphone shipments increased 40% quarter-on-quarter in Q2 2026. Their share of total smartphone shipments rose to 12%, compared with 7% in Q4 2025.The sub-₹15,000 segment has been particularly affected by price increases. Counterpoint said mass-market smartphone shipments fell 45% year-on-year in the June quarter.As consumers become more price-sensitive, manufacturers are adjusting their portfolios by adding or retaining 4G models at lower price points.What Does This Mean for 5G Smartphones?5G remains the long-term direction of India’s smartphone market, but its growth is facing affordability challenges in the short term.Counterpoint has said 5G will remain the long-term growth driver, while 4G will continue to serve value-conscious consumers until component costs become more stable.The situation could therefore lead to a more divided market, with premium and mid-range consumers continuing to adopt 5G while budget buyers increasingly consider 4G models.Refurbished Smartphones Add Another OptionThe rising prices of new smartphones are also supporting India's refurbished smartphone market.Recent industry data shows that refurbished devices are increasingly being used as an alternative to buying new mid-range smartphones. Financial Express reported that the secondary smartphone market accounts for around 20% of smartphone sales in India, while refurbished smartphone demand is expected to grow in 2026.This gives consumers another option at a time when new smartphone prices are rising.What Happens Next?India’s smartphone market is likely to remain sensitive to component costs, currency movements and consumer affordability through the rest of 2026.For manufacturers, the challenge will be balancing 5G adoption with demand for affordable devices. For consumers, 4G smartphones may continue to remain relevant, particularly in the entry-level segment, while premium buyers continue moving towards 5G.The broader market will depend on how quickly memory prices stabilise and whether smartphone brands can bring down the cost of newer devices.
