Smartphone prices in India continue to rise as increasing demand for memory chips from AI companies and data centres drives up component costs. Manufacturers are incorporating advanced AI features into new models, contributing to higher prices.
Since February, major brands including Vivo, Samsung, Realme, Oppo, Nothing, Poco, and Xiaomi have issued multiple price hikes to retailers, with increases ranging from ₹1,000 to ₹5,000.
These hikes are pushing budget smartphones out of reach for many price-sensitive buyers, with some entry-level models now costing more than twice their previous prices. The traditional ₹10,000 smartphone segment is rapidly disappearing. The rising prices are also affecting consumer behavior across India. Retailers report fewer customers and lower purchase rates, as buyers delay upgrades, wait for discounts, or choose less powerful devices to stay within budget.
While AI features are becoming standard as brands compete to offer enhanced performance, the increased cost of memory and other components is elevating retail prices. As a result, consumers are prioritizing essential features over advanced AI functions, underscoring the affordability challenges driven by AI-related memory-chip demand.
