The continuously increasing prices of smartphones in India can be a cause of concern for companies. According to a new report, if phones continue to become expensive, then during the festive season i.e. July to December, more than half of the customers may postpone the plan of buying a new smartphone or may turn to second hand phones.
A joint report by Trakin Tech and TechArk states that the demand of 54% of customers thinking of buying a smartphone in the second half of the year is in danger. For the report, a survey was conducted on 5,958 potential buyers across the country.
Demand for second hand phones likely to increase
According to the report, about 48% customers will wait for the prices to reduce, while 6% people can buy refurbished or old smartphones. If prices continue to rise like this, the total sales of smartphones in India this year may come down from 136-138 million units to 115-120 million units.
Experts believe that the second hand and refurbished smartphone market will benefit the most from this. This market may increase from 23-25 million units to 30-32 million units this year.
Why are smartphone prices increasing?
Between January 2025 and May 2026, smartphone companies have increased the prices of many models. The main reason for this is the rise in global prices of NAND Flash and DRAM memory chips. These chips are necessary for the storage and memory of the phone. Smartphones priced below Rs 20,000 have been affected the most. Prices in this segment have increased by an average of 8% to 12%.
Impact of AI and weak rupee
According to Faisal Kawoosa, founder of TechArk, memory chips have become expensive due to the increasing demand from AI companies. Apart from this, the weakness of the rupee against the dollar and companies’ focus on higher profits have also become the reason for the increase in prices.
Arun Prabhudesai, founder of Trakin Tech, said that Indian customers want better phones, but not at very high prices. If companies do not control prices, customers will start postponing purchases or adopting cheaper options.
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