Memory Chip Cost Hike Pulls Down India Tablet Sales in Second Quarter

Tablet computer shipments in India dropped 3.8 per cent year-on-year in the second quarter of 2026. Market research firm Counterpoint Research reports that rising memory chip prices caused this decline. Brands started passing higher input costs on to buyers, which pushed up overall selling prices.

Market Shifts

The budget segment priced below twenty thousand rupees took the heaviest hit. Supplies in this category fell 43 per cent compared to the same period last year. Principal Analyst Anshika Jain notes that the sub-twenty thousand bracket has traditionally been the backbone of the local tablet market. Meanwhile, the segment priced above twenty thousand rupees grew 27 per cent and now captures 74 per cent of the total market. This shift towards premium products pushed the average selling price up by 15 per cent. Buyers also showed a clear preference for screens larger than 12 inches.

Growth Areas

The price band between twenty thousand and thirty thousand rupees grew 45 per cent, backed by brands like OnePlus and Lenovo. Even though overall tablet supplies fell, domestic manufacturing grew 30 per cent in the second quarter. Big players like Samsung and Lenovo kept expanding their local production. Brands such as OnePlus and OPPO are also making their manufacturing presence stronger in India. Counterpoint Research expects elevated memory prices to affect demand during upcoming festive seasons, although sales promotions could offer some support.

Context

Memory chip price inflation directly impacts global electronics manufacturing when component costs rise for factories. When component costs go up, companies often adjust their product lineups or raise retail prices to protect profit margins. This dynamic frequently shifts consumer demand toward higher-priced models that can better absorb the increased production costs.