ICEA: India smartphone volumes to dip 5-7% in FY27, value to rise 8-10% on chip-driven price hikes

Industry body ICEA forecasts a 5-7% volume decline in FY27 even as market value grows 8-10%, as memory shortages from the AI boom triple entry-level prices to ₹10,000-15,000. With 500M Indians still without smartphones, financing turns critical; RBI's default-disable framework could revive lending and cushion the hit.

— Source publishedFri, 22 May, 2026, 19:10 IST·First seen Fri, 22 May, 2026, 19:23 IST·Source The Hindu BusinessLine

What happened

ICEA forecasts India smartphone volumes to dip 5-7% in FY27 while value grows 8-10% due to higher prices driven by memory chip shortages from the AI boom.

Key facts

  • 5-7% volume decline FY27
  • 8-10% value growth
  • ₹10,000-15,000 entry price
  • 750 million smartphone users
  • 500 million without smartphones
  • USD 70 billion production
  • ₹2.5 lakh crore exports

Why this matters

Scout bolt-ons in device financing, trade-in/refurb, and memory-supply hedges to monetize the 500M unconnected base before chip-driven pricing locks them out.