Smartphone Price Hike: The smartphone market in India may go through difficult times in the coming times. The biggest reason for this is the sharp rise in RAM (memory) prices globally, which is increasing pressure on companies. Due to this, not only the sales of phones are being affected but their prices may also increase.
signs of decline in sales
According to a recent report, smartphone shipments in January were weak year-on-year and compared to previous months. It is estimated that sales have declined by about 25%. The main reason for this is the sharp increase in RAM prices which is continuously increasing from August 2025.
Demand for AI increases RAM prices
The increasing demand of Artificial Intelligence (AI) industry is considered to be the major reason behind the rise in RAM prices. Big tech companies are buying huge amounts of memory for AI projects, which has reduced the supply in the general market. Because of this, the prices of RAM have increased manifold in the last one year, which has a direct impact on the cost of smartphones.
smartphones are getting expensive
When the cost of a device increases, it also impacts the customers. According to industry sources, the average price of smartphones has increased by about 8% in the last few months. Industry leaders like Carl Pei have also already indicated that phones may become expensive this year due to lack of RAM.
Entry-level phones most affected
Price pressure is being seen most on the cheap and budget smartphone segment. Increase in costs in this segment has a direct impact on customer demand, leading to decline in sales.
Increasing pressure on companies
Companies like Motorola, Oppo and Realme have seen a decline of 20% to 68% in sales on an annual basis. It is clear from this that pressure is increasing in the market and it may be difficult for companies to achieve their targets.
Despite these challenges, India is progressing rapidly in the field of smartphone manufacturing. The country has now become the world’s second largest mobile phone manufacturer and most of the phones sold in the domestic market are made here. Additionally, smartphones have also become India’s largest export product in which Apple has a major contribution.
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