4G Phones See Resurgence Amidst Rising Smartphone Prices

If you’ve been eyeing a new smartphone, your budget might be giving 4G phones an unexpected comeback. Rising costs are pushing affordable 5G options out of reach, making older models relevant again for everyday shoppers.

Shrinking Budget Choices

The market for smartphones priced under **$100** (or Rs 9,000) is rapidly disappearing. Component expenses have made these entry-level devices unprofitable for manufacturers, leaving fewer low-cost choices.

Shipments of these sub-**$100** smartphones plummeted by a staggering **74.3%** year-on-year during the April-June quarter of 2026. This drastic drop reduced their overall market share from **15.6%** to a mere **4.5%**.

Key Market Shifts

Overall smartphone shipments experienced an **11.1%** decline in the quarter, totaling **33.2 million** units. At the same time, the average selling price (ASP) surged by **14.4%** to a record **$315**, or roughly Rs 28,400.

This price hike is largely due to higher memory and component costs, alongside reduced discounts from vendors. Consumers are now compelled to consider pricier devices, shifting demand towards more expensive segments.

While the cheapest segment collapsed, the **$100-200** category remained stable, and the **$400-600** segment saw significant growth of **60.3%**. This clearly shows where consumer spending is being pushed.

4G’s Unexpected Return

The increasing cost of entry-level 5G smartphones is reshaping the market mix. During the quarter, 4G devices accounted for **11.1%** of all shipments, offering a temporary lifeline for budget-conscious buyers.

However, industry analysts like IDC view this as a temporary, supply-driven trend. The expectation is that consumers will eventually transition to more expensive 5G devices once current 4G inventory is depleted.

Brands Under Pressure

Several major Chinese smartphone brands have been particularly impacted by these market dynamics. Companies like **Vivo**, **Xiaomi**, **Oppo**, **Realme**, **Poco**, and **iQoo** have reported substantial declines in their shipments.

The industry anticipates further pressure through the latter half of 2026. As brands use up their lower-cost component stocks, there will be less flexibility for discounts, even during the crucial festive season.

IDC projects a more than **15%** drop in smartphone shipments for the second half of 2026. This would bring the full-year volume to an estimated **128-130 million** units, reflecting a challenging year for the smartphone market in India.