
According to a report by the Economic Times, manufacturers of entry-level smartphones are attempting to recapture the budget segment in India as major global brands shift their focus toward premium, higher-margin devices. Brands such as Itel and Lava are reportedly reintroducing models with 2GB or 3GB of RAM and 4G connectivity to cater to consumers seeking devices priced under ₹10,000.
Industry executives suggest that this move is a strategic response to a market vacuum. As larger smartphone manufacturers prioritize premium specifications to offset rising costs for memory and chipsets, the entry-level tier has become increasingly neglected. This shift has created an opening for domestic and budget-focused brands to target price-sensitive consumers who are finding it difficult to source affordable, functional hardware.
Data from the research firm IDC highlights the severity of this transition, noting that shipments in the entry-level segment plummeted by 74.3% year-on-year in the second quarter of 2026. The segment's overall market share has contracted significantly, falling from 15.6% to 4.5%. Analysts indicate that these figures underscore the growing commercial unviability of the sub-₹10,000 category under current manufacturing cost environments, even as some brands attempt to maintain a presence in the space through specialized low-spec offerings.
The story is based on industry data from IDC and reports from market executives regarding shifting trends in the Indian smartphone sector. While single-sourced, the report provides specific, verifiable market statistics and aligns with known industry shifts toward premiumization in emerging markets.
No corroborating trusted sources found.
Original report: Economic Times