Even before the launch of the new iPhone 18 series, it has become clear that buying new iPhones will be expensive. Apple CEO Tim Cook has recently indicated that amid the rising prices of memory chips, it is no longer easy to sell devices at old prices. The company may not have officially increased the MRP of the iPhone yet, but the reduction in special discounts and cashback support given to retailers has already started. Its effect is also visible in the market, where iPhone 15 and iPhone 16 series are not getting huge discounts like before.
But this story is not limited to Apple only. The smartphone industry is currently struggling with the challenges of rising costs, expensive memory chips, weak rupee and global supply chain. Data from Counterpoint Research, IDC and AIMRA show that many big companies have already made their smartphones expensive. Brands like Samsung, Xiaomi, Realme, OnePlus have increased the price of phones. But the question is whether this is just the beginning. Can smartphone companies impose additional burden on customers and what will be the impact on Indian customers?
Companies gradually increasing prices
Data from Counterpoint Research, IDC and All India Mobile Retailers Association show that there has been a sharp jump in the cost of major components like memory chips, processor, camera sensor and battery. Apart from this, weak rupee, rising import expenses and global supply chain challenges are also increasing pressure on companies. The cost of manufacturing phones is continuously increasing and it is becoming difficult for companies to sell devices at old prices. This is the reason why many brands are gradually increasing the prices. Its direct impact is on the pockets of customers.
What is the situation so far?
- The prices of memory chips have increased by 400% in three quarters.
- Vivo, Oppo, Realme and Xiaomi have already increased the prices of many models.
- It is becoming difficult to find good 5G phones priced below Rs 10,000.
- Indian smartphone shipments declined by 3% in the first quarter of 2026.
AI boom increases demand for memory chips
The biggest reason for smartphones becoming expensive is the rising prices of memory chips. Due to the rapid expansion of AI, companies like Nvidia, OpenAI and Google are building data centers on a large scale. These data centers require large amounts of DRAM and NAND flash memory. Chip manufacturing companies are now giving more priority to AI sector than smartphone companies because they get more profits there. According to Counterpoint Research, the prices of memory chips have increased by nearly 400 percent in the last three quarters. The price of memory which was earlier available for $20 has now reached $75. This has a direct impact on the cost of smartphones.
Making phones is more expensive than ever
According to industry reports, earlier the share of RAM and storage in the total cost of a smartphone was 10 to 15 percent. Now it has increased to 30 to 40 percent. Apart from this, new processors supporting AI features, larger camera sensors and larger batteries have also increased the production cost. The biggest challenge before the companies is that it is now becoming difficult to provide premium features in low priced phones. This is the reason why many brands are launching their new models at a higher price than the old variants.
Which companies increased the prices?
The price increase is not limited to Apple only. According to data from AIMRA and Counterpoint, Vivo has increased the prices of many of its models by 18 to 40 percent. Some models of Oppo have become costlier by 9 to 41 percent. Xiaomi has increased prices by 3 to 32 percent and Realme by 6 to 53 percent. In many cases, the new models of Realme have been launched costlier by Rs 5,000 to Rs 15,000 compared to the older variants. Whereas Motorola’s budget 5G phones, which were earlier available for around Rs 9,999, have now reached Rs 11,999 or above.
Even premium segment is not left
Brands like Samsung, OnePlus and IQ are also not untouched by the pressure of rising costs. According to reports, Samsung’s flagship Galaxy S26 Ultra has been launched at a price of about Rs 10,000 more than the previous model. OnePlus and IQ have also increased the prices of their new smartphone models by Rs 5,000 to Rs 12,000. Carl Pei, CEO of Nothing, has also admitted that due to the rising cost of smartphone components, an average increase of up to Rs 7,000 is being seen in phones priced above Rs 30,000.
What will be the impact on customers?
The effect of rising prices is now visible in the market. According to Counterpoint, smartphone shipments in India declined by 3 percent in the first quarter of 2026, which is considered to be the weakest performance in the last six years. A decline of up to 10 percent has been estimated in the market for the entire year. The biggest impact has been on the budget segment. Good 5G phones priced below Rs 10,000 are now decreasing rapidly. For phones which were earlier available for Rs 15,000, now customers have to spend Rs 20,000 to Rs 25,000. For this reason, the refurbished smartphone market is also growing rapidly.
What will happen next?
The increase in smartphone prices does not appear to be a temporary change. Industry experts believe that the pressure of shortage and increased cost of memory chips may continue till the end of 2027. In such a situation, even the big discounts available during festivals may not remain the same as before. If the current trend continues, then not only Apple but also smartphones of Samsung, Xiaomi, Realme, OnePlus and other companies may become more expensive in the coming months.
What recourse do users have?
Amidst the rising prices of smartphones, customers have not completely run out of options. The first way is to use your existing phone for a longer time. This is the reason why in recent months people have been using their old devices for a longer time instead of upgrading their phones.
The second option is of refurbished i.e. old smartphone. According to industry reports, due to new phones being expensive, the refurbished market is growing rapidly and this year its sales may increase from 25 million units to 32 million units. Apart from this, many customers are now choosing mid-range smartphones instead of flagship models, so that they get better features and also do not spoil the budget.
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