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Budget phones also went out of budget! Due to these reasons the prices of mobile phones are touching the sky

May 29, 2026 by Uma Shankar

Smartphones Price Hike in India: If you keep an eye on the new information about smartphones, then you must have noticed that many mobile manufacturing companies have increased the prices of smartphones in 2026. Every day some company or the other is increasing the price of phones, due to the continuously increasing prices, today the prices of phones from budget to flagship segment are touching the sky. For some time now, big brands like Oppo, Realme, OnePlus, Samsung have increased the prices of many models.

Is inflation the only reason behind rising prices? This could also be one reason, but there are many other reasons behind the increase in mobile prices. For example, Realme C71 was launched for Rs 7699, but after the price increase, now the price of this phone has become Rs 11999.

Processor and AI hardware are the reason

MediaTek, Qualcomm and other chip makers are constantly adopting new methods for AI, gaming and multitasking, but as things are advancing, prices are increasing. These chips cost much more to make than the old 4G chips.

Paying higher price for AI features

Apple, Samsung, Google, Xiaomi and other popular smartphone players are relying on AI tech more than ever. You get features like excellent photo editing, instant live translation, smarter AI assistant and search summary made from AI in the phone. All these benefits require powerful hardware, making the device even more expensive.

5G technology has increased the costing

Compared to 4G networks, 5G smartphones require advanced modems, better antennas, better cooling, and larger batteries to handle all this. Due to all these things the prices are increasing.

Cameras and displays are also increasing in price

According to the report of India TV, for the best experience in the phone, people want a camera with more megapixels, AMOLED screen, smooth refresh rate, OIS support with tremendous zoom. Providing all these premium things in the phone means more expenditure on parts due to which the prices are also increasing.

Rising cost of manufacturing and imports

Manufacturing and imports increase further pressure. Recently the global supply chain has suffered a setback. Shipping of semiconductors, raw materials and components is more expensive. Premium components still come at premium prices from places like China, Taiwan and South Korea.

Longer software support means higher expenses

Software support also has a hidden cost. Brands now promise that updates will continue for 3 to 7 years. From OS updates to security updates, to roll them out the company has to hire a bigger team and invest more in engineering. Because of all these things you have to spend extra money.

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About Uma Shankar

Uma Shankar writes about finance, business, and investment topics. He simplifies complex subjects like stock market, banking, tax, and cryptocurrency to help readers make informed financial decisions. Data-driven reporting is his strength.

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