Smartphone prices in India have risen sharply in 2026, with retail prices climbing 21% on average, the steepest increase among major global markets. According to Counterpoint Research's Global Smartphone Price Increase Tracker, global smartphone retail prices have risen about 15% so far this year.
India recorded the steepest increase at 21%, followed by Asia Pacific at 19% and the Middle East and Africa at 18%.
Why Are Smartphone Prices Rising In India?
Memory costs have emerged as one of the biggest cost pressures for smartphone manufacturers. Counterpoint Research said smartphone memory prices had increased nearly fourfold since September 2025, with rising DRAM and NAND costs pushing memory's share of the bill of materials above 45% for smartphones priced below Rs 15,000.
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The shortage is closely linked to growing demand for AI infrastructure. Memory manufacturers are allocating more production capacity to high-bandwidth memory used in AI servers, leaving tighter supplies of conventional memory used in smartphones and other consumer electronics. The Financial Times reported that DRAM prices had increased fivefold over the previous year as AI demand put further pressure on memory supplies.
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Budget Phones Are Getting More Expensive
The impact has been particularly severe at the lower end of India's smartphone market. Counterpoint said shipments of smartphones priced below Rs 15,000 fell 45% year-on-year in the June quarter. Business Standard also reported that the overall Indian smartphone market declined 10% year-on-year in the April-June quarter.
The pressure has also encouraged manufacturers to rethink specifications. Business Standard reported that some companies have reduced memory configurations to keep entry-level phones affordable.
New Phones Are Getting More Expensive Too
The price increase is not limited to existing models. Counterpoint Research said new smartphones launched globally were around 25% more expensive in 2026 than comparable models launched a year earlier. More than 40% of smartphone models have already seen price increases this year.
In India, the trend was already visible earlier in the year. Business Standard reported in April that more than 80 smartphone models had recorded average price increases of over 15%.
Consumers Are Changing How They Buy Phones
Higher prices are beginning to affect purchasing behaviour. Counterpoint Research's India consumer survey found that 46% of prospective smartphone buyers were willing to stretch their budgets to buy their preferred device despite a price increase. However, 25% said they would delay their purchase, while 29% planned to either stay within their budget or consider a refurbished phone.
For Indian consumers, this means the traditional cycle of getting better smartphone specifications at similar or lower prices is facing a major interruption. With memory supplies still tight and AI companies driving demand for the same semiconductor capacity, manufacturers are increasingly relying on higher prices, adjusted specifications, financing and exchange offers to maintain sales.
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