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If you are thinking of buying a new smartphone or iPhone this year, you will have to spend a little more time in your pocket. Even before the official launch of the new iPhone 18 Series, it has become completely clear that buying a new iPhone is now going to be a very expensive deal. Apple CEO Tim Cook has recently indicated that amid the skyrocketing prices of memory chips, it is no longer possible for the company to sell new devices at old prices. Although Apple has not yet officially increased the MRP of the iPhone, it has started internally cutting special discounts, bank offers and cashback support given to retailers. Its direct effect is visible in the market, where the old huge discounts available on iPhone 15 and iPhone 16 series have now disappeared.
But this story is not limited to Apple only. The entire smartphone industry is currently grappling with rising component costs, expensive memory chips, weakening rupee against the dollar and serious challenges in the global supply chain. Latest data from Counterpoint Research, IDC and All India Mobile Retailers Association (AIMRA) shows that many big tech companies have already secretly increased the prices of their smartphones. Big brands like Samsung, Xiaomi, Realme, OnePlus and Vivo have made their phones expensive. In such a situation, the big question is whether this is just the beginning and how big an impact it is going to have on Indian customers in the coming days?
Sharp rise in spare parts cost, impossible to sell phones at old prices
According to reports by Counterpoint Research and IDC, there has been a huge jump in the cost of key components used in smartphones – such as memory chips, processors, advanced camera sensors and batteries. The weakening rupee against the dollar has made sourcing spare parts from abroad more expensive. Due to increase in the total input cost (production cost) of manufacturing phones, sticking to the old MRP is proving to be a loss-making deal for the brands. This is the reason why companies are slowly but continuously increasing the prices of their handsets, the direct burden of which is falling directly on the pockets of common Indian customers.
A look at the current market situation:
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The prices of memory chips used in smartphones have increased by 400% in the last three quarters.
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Vivo, Oppo, Realme and Xiaomi have secretly increased the prices of many of their popular models.
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The best 5G smartphones priced below Rs 10,000 are now rapidly disappearing from the Indian market.
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India’s smartphone shipments have declined by 3% in the first quarter of 2026 due to rising inflation.
AI boom becomes villain: data centers absorb the world’s memory chips
The biggest and main reason for smartphones suddenly becoming so expensive is the huge shortage of memory chips in the global market and their rising prices. Actually, at present there is a tremendous boom of Artificial Intelligence (AI) going on all over the world. Big tech companies like Nvidia, OpenAI, Microsoft and Google are building new AI data centers on a large scale. Running these huge data centers requires huge quantities of high-speed DRAM and NAND flash memory chips.
Big chip makers like Samsung and SK Hynix are now giving more priority to the AI sector than smartphone brands, because there they are getting many times more profits. According to Counterpoint Research, due to this tussle, the prices of memory chips have increased by almost 400 percent in the last nine months. The price of memory chip which was earlier available to smartphone companies for just $20, has now increased to beyond $75.
Cost of RAM and storage doubled, it became difficult to provide premium features
According to the latest industry reports, earlier the share of RAM and internal storage in the total cost (Bill of Materials) of making any smartphone used to be only 10 to 15 percent. But due to the inflation of chips, now this share has directly increased to 30 to 40 percent. Additionally, expensive processors, larger camera sensors, and higher capacity batteries to support the heavy AI features found in today’s phones have also increased production costs. Now the biggest challenge before the companies is how to provide premium features in low-cost budget phones. This is the reason why new smartphones are being launched at a much more expensive price than their older variants.
From budget to flagship; Know which company increased the prices by how much
According to data from All India Mobile Retailers Association (AIMRA), this rise in prices is not limited to any one brand, but has engulfed the entire industry:
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Vivo and Oppo: Vivo has increased the prices of many models in its mid-range and budget segments by a huge 18 to 40 percent. At the same time, some selected models of Oppo have also become costlier by 9 to 41 percent.
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Xiaomi and Realme: Chinese smartphone giant Xiaomi has increased the prices of its phones by 3 to 32 percent. The biggest blow has been to the customers of Realme, which has increased the prices by 6 to 53 percent. In many cases, the new successor models of Realme have been launched directly by Rs 5,000 to Rs 15,000 more expensive than the older variants.
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Motorola: Motorola’s best budget 5G phones, which were earlier available in the Indian market at an aggressive price of Rs 9,999, have now increased to Rs 11,999 or more.
Premium and flagship segments are also not untouched by inflation
If you think that this inflation is limited to budget phones only, then you are wrong. Premium brands like Samsung, OnePlus and iQOO have also completely broken down due to this huge cost pressure. According to reports, Samsung’s most expensive flagship phone ‘Galaxy S26 Ultra’ has been launched in the market at a price about Rs 10,000 more expensive than its previous model.
OnePlus and iQoo have also significantly increased the launching prices of their new premium smartphone models by Rs 5,000 to Rs 12,000. At the same time, Carl Pei, the famous CEO of Nothing, has also publicly admitted that due to the rising international cost of components, the prices of premium phones above Rs 30,000 are seeing an average increase of up to Rs 7,000.
What is the impact on customers; Increased inclination towards refurbished market
The extremely negative impact of these rising smartphone prices is now clearly visible on the Indian retail market. According to Counterpoint data, total smartphone shipments within India declined by 3 percent in the first quarter of 2026, which is considered to be the weakest and disappointing performance in the last six years. A major recession of up to 10 percent has been estimated in this market for the entire year.
The worst impact has been on the middle class budget segment of the country which used to buy phones in the range of Rs 10 to 15 thousand. It has now become almost impossible to find a good 5G phone under Rs 10,000. Phones which were earlier easily available for Rs 15,000, now Indian customers have to spend Rs 20,000 to Rs 25,000 for similar features. For this reason, the market of old and refurbished smartphones is expanding very fast in the country.
Will prices reduce in future? Know what the experts believe
Industry experts and market analysts believe that this huge increase in smartphone prices is not a temporary or a few days change. This global shortage of memory chips and this strong pressure of increased cost of components may continue till the end of the year 2027. This simply means that this year even the big discounts and offers available during Diwali and festival season will not be as attractive as before. If this trend continues at the international level, then smartphones of not only Apple but also all companies like Samsung, Xiaomi, OnePlus may become more expensive in the coming months.
What are the ways for users to avoid this inflation of smartphones?
Amidst this severe recession and inflation, Indian customers still have some very practical options to save their budget:
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Using the phone for a long time: The first and wisest way is to use your existing smartphone for some more time. This is the reason that in recent months, instead of upgrading their phones every year, Indian consumers are dragging their old devices for two to three years.
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Approaching the Refurbished Market: Due to new phones becoming expensive, the market for certified old or refurbished phones is growing rapidly. According to industry reports, this year the sales of refurbished phones in the country may jump from 25 million units to 32 million units.
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Choosing the mid-range segment: Many smart customers are now choosing value-for-money mid-range smartphones worth Rs 25 to 30 thousand instead of investing directly on the flagship model of Rs 70-80 thousand, so that they can get the latest features and also do not spoil their household budget.