Smartphone prices are increasing in India. Due to memory chips being expensive, companies have increased the prices from ₹ 1,000 to ₹ 3,500. The main reason for this is the increasing demand from AI companies, due to which 5G phones may become more expensive.
New Delhi: The prices of budget and mid-range segment smartphones are continuously increasing in India. Popular brands like Samsung, Vivo, Realme, Xiaomi, Oppo and Nothing have increased the prices of many of their phone models. Because of this, people are now waiting for discounts and exchange offers to buy a new phone. Let us know why smartphones have suddenly become expensive in India.
Why are smartphone prices increasing?
The prices of different smartphone models in the country have increased from Rs 1,000 to Rs 3,500. Some phones have become even more expensive than this. The thing to note is that this increase is not visible in newly launched phones, but on the models already present in the market. Its biggest impact is on budget and mid-range phones, which are sold the most in India. According to a report, for this reason many people are forced to use their old phone for a long time instead of buying a new phone. Smartphone sales have also declined compared to last year. While usually 13 to 13.5 crore smartphones were sold in a year, by 2026 this figure may come down to 11.5 to 12 crore.
Memory chips become expensive
The manufacturing cost has increased in the supply chain for smartphone companies. A major reason for this is the increase in the prices of memory chips (DRAM RAM and NAND flash storage). Nowadays AI companies are buying a large part of the global memory supply. Building data centers requires large quantities of this memory hardware, which has led to a shortage of chips for smartphone companies and increased prices. When phone parts became expensive, brands were left with no other option but to increase the price of phones. Experts believe that now it will be very difficult to get a 5G phone in the budget of Rs 15,000. If this trend continues, then the starting price of 5G phones can reach Rs 20,000. The second-hand market may benefit from the rising prices of new smartphones. It is believed that the demand for old 5G phones will increase.
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