- Smartphone prices in India have increased by up to 40% on select models since mid-2025
- Over eight brands raised prices by an average of Rs 1,500 per device due to supply issues
- Mid-range smartphones face steeper price hikes than premium models, affecting sales
Smartphone prices in India have surged sharply, with brands including Samsung, Oppo, Xiaomi, Realme, Nothing and Vivo increasing prices by up to 40% on select models, prompting consumers to delay upgrades and opt for device repairs instead.
Since the second half of 2025, more than eight smartphone brands have implemented price hikes across certain models, with prices rising by an average of Rs 1,500 per device, according to industry reports.
Once-affordable mid-range smartphones-which previously dominated the Indian market-are now among the hardest hit.
In some cases, mid-range devices are seeing steeper price increases than premium models. Market data tracking smartphone sales in 2026 shows a 9% year-on-year decline, reflecting growing price sensitivity among Indian consumers.
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Key Factors Behind the Price Rise
A major driver of the price increase is a global shortage of memory components, particularly DRAM and NAND, which are critical for smartphones.
This shortage is being driven by the rapid expansion of artificial intelligence infrastructure. AI companies are aggressively purchasing specialised high-bandwidth memory (HBM) modules for data centres, diverting supply away from consumer electronics.
Attracted by significantly higher margins-reported to be nearly ten times greater-memory manufacturers have increasingly shifted production from traditional smartphone and PC memory to HBM chips for AI workloads.
These chips require more silicon and manufacturing capacity, leading companies to reallocate resources accordingly.
As a result, the cost of smartphone memory components has risen by 50-60% in some cases, contributing directly to higher handset prices, according to the reports.
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Additionally, ongoing geopolitical tensions in West Asia, including the conflict involving Iran, the US and Israel, have disrupted global supply chains and increased shipping costs. These higher logistics costs are ultimately being passed on to consumers.
Previous industry reports also suggest that manufacturers may move away from 16GB RAM variants, instead offering 8GB and 12GB options in future smartphones to manage costs.
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