Memory chip cost surge raises Indian phone prices, shipments fall
If you've noticed phones getting more expensive lately, you're not alone.
Memory chip costs have shot up because manufacturers are focusing on AI data centers, leaving fewer chips for regular smartphones.
This has pushed phone prices higher and caused a 10% drop in shipments during the second quarter of 2026, the biggest second-quarter dip in six years.
The affordable sub-₹20,000 segment, which is where most people shop, has felt the pinch the most.
Upgrade cycles lengthen, under-₹15,000 shipments slump
With prices climbing, people are holding onto their phones longer; upgrade cycles have stretched from 3.5 to nearly four years.
Shipments of budget phones (under ₹15,000) fell by 45%, and Chinese brands saw their lowest market share since 2020.
Samsung managed a small growth despite the challenges.
Many buyers are now turning to financing or secondhand options to cope with price hikes, and analysts say these trends could stick around through 2027 as brands rethink how to stay competitive in India's price-sensitive market.