Smartphone price hikes in 2026: Will more buyers switch to refurbished phones?
Follow UsRising memory chip costs are pushing smartphone prices higher across all price segments in 2026.
Experts expect refurbished phone demand to grow as buyers look for better value and lower prices.
Some analysts believe many consumers will still prefer new phones using EMI, exchange offers, and discounts.
It is no surprise that smartphones are getting pricier across every category, whether it be budget, mid-range, or flagship. The main reason behind this is the global shortage of memory chips, which has pushed up manufacturing costs. Recent phone launches clearly show that the recently launched models either cost more than before or have cut corners on specifications so that they can stay affordable. If the brands continue to struggle with the supply chain problems, buyers will only have limited value-for-money options. Moreover, if the smartphone prices keep climbing the way they are, many people may start looking at refurbished or second-hand phones instead, as they are more affordable while offering many of the same features as new devices.
SurveySo, are we moving towards a trend where potential buyers may end up preferring a refurbished phone over a new one? Read on for some interesting insights.
Smartphone prices are climbing across the market
The Indian smartphone market is expected to see another round of price increases in 2026. According to Tarun Pathak, Research Director at Counterpoint Research, more than 85 per cent of existing smartphone models have already seen a price hike. On average, prices have increased by around 15 per cent, with some devices expected to become nearly 20 per cent more expensive in the coming months.
The impact is even sharper for newly launched smartphones. Compared to their predecessors, many new models are priced 30 to 40 per cent higher. As a result, the buyers planning to upgrade could end up spending significantly more than they would have a year ago.
Refurbished phones could become a stronger choice
Tarun believes that rising smartphone prices driven by higher memory costs are expected to accelerate the shift towards refurbished and second-hand smartphones, particularly in price-sensitive markets like India.
He said that ‘as the cost of new smartphones continues to increase, refurbished devices are becoming a more compelling value proposition.’ According to him, ‘some consumers who were considering a new Android smartphone may opt for a refurbished iPhone at a similar price point, while others are likely to choose a refurbished Android device that offers better specifications or features within the same budget.’
Pathak adds that both Apple and Android brands are likely to benefit from this trend, depending on the value they offer buyers. Speaking to Digit, he said that Counterpoint Research expects India’s refurbished smartphone market to grow by around 12 per cent YoY (year-on-year) in 2026. At the same time, the new smartphone market is projected to decline by around 11 per cent. He believes this could make 2026 an important year for the country’s secondary smartphone market.
Tarun also points out that premium Android smartphones are now reaching price levels close to Apple’s iPhone lineup. As the price gap narrows, he believes Apple could continue to enjoy an advantage because of its strong brand image and aspirational appeal.
Not everyone expects a refurbished boom
However, not every market expert agrees that rising smartphone prices will lead to a major shift towards refurbished devices. Citing research by the CMR Group, Prabhu Ram stated that buyers in tier-one cities are still expected to upgrade to premium smartphones despite higher prices.
He further added that, unlike consumers in tier-one cities, those living in tier-two and tier-three cities are becoming more cautious with their spending. Instead of immediately replacing their phones, many are delaying upgrades or making use of EMI plans, exchange programmes and festive offers to keep purchases affordable. Ram believes this trend will continue through 2026, with smaller cities remaining the biggest driver of smartphone demand.
Value segment remains the biggest market
Even as premium smartphones continue to attract attention, affordable and mid-range devices remain the backbone of India’s smartphone market.
Ram said that CMR believes that the Rs 7,000 to Rs 25,000 segment will continue to account for the highest sales volumes. While at the same time the Rs 25,000 to Rs 50,000 category is expected to grow the fastest as more buyers look for premium Android smartphones with 5G support.
He also said that this shows that Indian consumers are still interested in buying new smartphones. Instead of moving away from new devices, many are simply adjusting their budgets or choosing financing options to make purchases easier.
Moreover, he believes that the overall smartphone market in India could decline by around 10 per cent in calendar year 2026, but that does not automatically mean refurbished phones will become the preferred choice for most buyers.
Where both analysts agree
While their ideas on the refurbished market differ, both analysts, Tarun Pathak and Prabhu Ram, agree that the smartphone prices are expected to remain under pressure in 2026 as higher memory costs continue to affect the industry.
Both analysts also believe that India’s new smartphone market will see a slowdown in the coming year, although their estimates vary slightly. Moreover, they agree that consumers will become more cautious with spending and will look for better value before making a purchase. Whether that value comes through a refurbished smartphone, exchange offers, EMI plans, or discounts will depend on individual budgets and preferences.
Refurbished devices offer better value
Yug Bhatia, Founder of Control Z, a company that deals in refurbished and used smartphones, believes that the recent price hikes on the recently launched and upcoming smartphone models could help the refurbished phone market grow faster.
He said that the prices of refurbished smartphones have also increased because more people are buying them, and supply remains constrained. However, even after the price increase, refurbished phones are still cheaper and offer better value than new smartphones.
Bhatia said that many people who would have bought new phones are now choosing refurbished ones instead. He believes this change is helping the refurbished smartphone industry grow faster than expected and may bring forward the market’s expected growth over the next two to three years.
Will the smartphone market change?
Phone memory chips are getting more expensive, and supply shortages are pushing up smartphone prices across the market. As a result, consumers are becoming more careful with their purchases, paying closer attention to whether the specifications offered by a brand deliver good value for money. Moreover, as smartphone prices continue to rise, many buyers may consider buying a refurbished device instead, as a new smartphone at a similar price may not offer significantly better value.
Industry experts also believe that the sales of new smartphones are likely to remain stagnant, particularly in 2026 and the years ahead, while sales of refurbished phones are expected to grow drastically. At the same time, research suggests that the trend of buying refurbished or second-hand devices is likely to be more prominent in tier-2 and tier-3 cities, where purchasing power is relatively lower.
