Online Sales of Phones and Laptops Decline in India Amid Weaker Demand and Fewer Discounts

E-commerce is no longer the undisputed growth engine for tech sales in India, at least not for smartphones and laptops. Market researcher data shows that online platforms have lost up to five percentage points of market share to physical stores in the first half of 2026, according to The Economic Times.

The online share of smartphone sales fell to 41.9% from January to June, down from 46.5% a year earlier. For laptops, the share declined from 32% to 30%. These figures, provided by IDC India and corroborated by Counterpoint Research, signal a significant shift in market dynamics.

Details of the Market Slowdown

Online smartphone shipments saw a year-on-year drop of 19.8% in the June quarter. In contrast, shipments to physical stores only decreased by 3.6%. Overall, smartphone shipments declined by 11%, and the total volume from January to June fell by 8%, marking the lowest first-half volume in five years, according to IDC India. However, the total market value grew by 3.6% due to price increases.

In the laptop segment, consumer shipments grew by 6.6% year-on-year in the June quarter. This increase, according to IDC, was primarily driven by forward purchases by distributors to guard against further price hikes and protect margins, rather than stronger end-consumer demand.

What's Driving This Change?

Several factors are contributing to this e-commerce slowdown. A key reason is the weaker demand for entry-level products. Market researchers and industry executives point out that price increases, which have reached up to 35-40% this year for memory-intensive devices, have impacted price-sensitive consumers.

Furthermore, online platforms have significantly reduced the discounts and offers that previously attracted many buyers. Navkendar Singh, an analyst at IDC India, noted that online discounts are much scarcer than a year ago, particularly affecting sales of entry-level models. Physical stores, on the other hand, have gained ground by offering more EMI (Equated Monthly Installment) financing options, helping buyers manage the impact of higher prices. Shibashish Roy, CEO of Infiniti Retail (which runs Croma electronic stores), explained that pure online businesses have faced headwinds this year due to price increases.

The TV Market Contrast and Future Outlook

Interestingly, not all segments have seen a decline in online sales. In the television market, e-commerce’s contribution to total sales rose from 36% to 39% in the June quarter, according to Counterpoint Research. Still, the overall TV market contracted by 8% year-on-year, with smart TV prices increasing by up to 10%, with Sony and TCL recording the steepest hikes among leading brands.

For the second half of 2026, industry executives expect price-sensitive Indian buyers to remain under pressure. With average selling prices at record highs and vendors prioritizing margins over aggressive discounts, platforms will focus on offering attractive EMI financing options to their customers.

Why it matters

This shift in consumer behavior and sales strategies in India shows us that even e-commerce is not immune to economic pressures. Inflation and cautious spending are forcing companies to rethink how and where they sell their products. We will see if this trend continues or if the market's ingenuity finds new ways to attract online shoppers.