Memory chip demand fuels smartphone price surge in India
Smartphone prices are climbing in India because AI companies and data centers need more memory chips, and that's making it harder for people to buy new phones.
Many are either waiting it out or choosing basic models instead.
Vivek Singh, a longtime phone retailer in South Delhi, says this is the first time he's seeing phone prices increase, and continue increasing relentlessly, in the last 20 years.
Retailers sell older stock, 20% wait
Retailers are managing by selling older stock and trade-in phones at better margins.
According to Kailash Lakhyani, AIMRA's founder chairman, 60% of phones are being purchased overall, but 20% of customers are waiting for the festival season, hoping for discounts, while there's also a rumor of a GST cut for smartphones, so some customers are waiting for that.
Experts warn these higher prices could stick around until 2028 or even 2030, especially in countries where budgets matter most.