NEW DELHI: Offline smartphone sales fell 18-20% by volume during the Diwali season, according to the All India Mobile Retailers Association (AIMRA), even as sales value stayed flat. The slowdown was visible earlier throughout the festive season. Counterpoint Research estimated that smartphone sales volumes fell 20% year-on-year across the first two waves of festive sales through late Oct, covering Navratri and Dussehra.Days after Diwali, two Indian smartphone brands are raising prices by up to Rs 3,000. Ai+ Smartphone has already pushed two models past the Rs 10,000 mark, while Lava will raise prices from Nov 15. Both companies cited higher memory costs.The hikes come as the entry-level market is shrinking sharply. Shipments of smartphones priced below Rs 10,000 fell 65% year-on-year in the first half of 2026, according to Counterpoint. The segment accounted for just 4% of overall shipments in April-June, down from 18% in July-Sept 2025. The pressure extended to costlier phones in the Sept quarter, when shipments below Rs 20,000 fell 47% year-on-year, compared with a 20% decline for the overall market.Ai+ raised prices by Rs 1,000 to Rs 3,000 on select variants on Nov 11. The 4GB RAM and 64GB storage versions of its Pulse 2 and Pulse 2 FE went from Rs 8,999 to Rs 10,999, an increase of about 22%. The company brought forward the hike by four days, citing higher memory and other component costs for fresh stock.Lava said ongoing memory shortages had prompted a price increase of up to Rs 3,000 across its smartphone portfolio from Nov 15. It said festive prices would remain available online and in stores until the revision takes effect.Counterpoint said rising DRAM and NAND memory costs had already triggered several rounds of handset price hikes, leaving brands less room for deep festive discounts. Higher prices have led some shoppers to delay upgrades and made financing and trade-in offers more important for those still looking to buy.