Smartphones will become expensive, this decision of China will have an impact!

If you are also thinking of buying a new smartphone, then read this article especially. Smartphone prices may increase soon! Tech market experts have warned of an increase in smartphone prices in the near future. The increased price of memory chips and the strengthening of the Chinese Yuan are likely to increase the price of smartphones.

Market research firm TrendForce has published a report on the price hike of DRAM i.e. memory chips. Major suppliers like Samsung and Micron may increase phone prices by 15 to 20 percent in the next quarter. This price hike is due to the shortage of DRAM i.e. memory chips. With the increasing use of artificial intelligence and high performance computing, prices will also increase in the smartphone and computer market.

The effect of strengthening of Chinese currency

With the strengthening of China's currency Yuan, the price of smartphones is also expected to increase. The yuan rose from a low of Rs 11.32 in June 2023 to Rs 12.08 in December. Which is an increase of 6.7 percent. After December, the price of the Chinese yuan has increased again. This has a direct impact on smartphone brands, as they are heavily dependent on Chinese components. Due to the import of smartphones becoming expensive, their price may also increase.

A night of potential cuts

The good news is that the interim budget has reduced import duties on mobile phone parts, which may provide some relief. But despite the increase in memory chip prices, this reduction relief helps in controlling production costs.

What will be the impact on consumers?

Market experts have warned that high smartphone prices could reduce consumer demand, a market that has just started to recover. To prevent this demand from falling, companies may choose to provide less memory and storage in the phone instead of increasing the price. That is, features like 8 GB RAM and 256 GB storage, which are currently available even in phones worth Rs 10,000, may be limited.

Due to the increase in the price of memory chips, it will be difficult to make 5G smartphones available in the price segment of Rs 10,000 or less. Due to which cheap smartphones will remain a dream.