Smartphones, TVs, laptops to get costlier soon: Here's why
What's the story
The prices of smartphones, televisions, and laptops are likely to increase by 4-8% in the next two months. This comes on top of a massive price surge of up to 21% seen in November-December last year. The hike is mainly due to the rising demand for memory chips amid the rapid adoption of artificial intelligence (AI) and high-performance computing technologies.
Market trend
Memory chip market enters 'hyper-bull' phase
The memory chip market has entered a "hyper-bull" phase, according to market tracker Counterpoint Research. After a whopping 50% price surge last quarter, the prices are expected to rise by another 40-50% this quarter and an additional 20% in April-June. This trend is already affecting smartphone manufacturers like Vivo and Nothing, who have hiked their prices by ₹3,000-5,000 in January alone.
Supply issues
Memory chip supply challenges and price hikes
Phone manufacturers are struggling to source memory chips. Super Plastronics, which sells TVs under Kodak, Thomson, and Blaupunkt brands, is only able to fulfill about 10% of its orders for these chips. The company's CEO Avneet Singh Marwah said they hiked prices by 7% in November and plan another hike of 10% this month along with a further increase of 4% in February.
Market response
Retail chains and brands respond to price hikes
Retail chains have already increased laptop prices by 5-8%, while major television brands are also planning price hikes. Pulkit Baid, Director at Great Eastern Retail, said these increases will impact immediate demand. The All India Mobile Retailers Association (AIMRA) has reported smartphone prices rose by 3-21% in November-December last year. It represents over 150,000 stores and expects total prices could rise by as much as 30% in the coming months.
Market impact
Price shock to cause market contraction
AIMRA Chairman Kailash Lakhyani warned that this price shock could lead to a major contraction in the market. He predicted 2026 shipment volumes could drop by 10-12%, with the biggest impact on the sub-₹20,000 segment. Counterpoint Research also predicts India may see a sharper decline in smartphone sales than its projected 2% due to rising memory chip and handset prices.