New Delhi:
If you are looking for a good deal to buy your next smartphone, you may have to wait a little longer. Across India, brands like Samsung, Vivo, Oppo, Realme, Xiaomi and Nothing have been quietly increasing prices from late 2025.
In many cases, the price of the phone is Rs 1,000 to Rs 3,500 higher than before. Some models are up to 40 percent more expensive. Due to this, the middle class buyer is suffering the most loss. This is important because the mid-range segment drives India’s smartphone sales. Follow live updates
Due to rising prices, people are getting their old smartphones repaired instead of buying new smartphones. Sales data from early 2026 shows smartphone purchases are down nearly 9 percent year-over-year.
What is behind the increase in smartphone prices?
The real reason lies inside your phone: memory chips. The problem starts with two small parts inside every smartphone – DRAM and NAND memory chips.
These chips have become very expensive. Why? Because artificial intelligence (AI) Companies are buying huge amounts of a different type of memory – high-bandwidth memory (HBM) which is used in data centers operated by companies like Nvidia.
Memory makers such as Samsung Electronics, Micron Technology and SK Hynix are shifting production to meet AI demand.
HBM chips give them far higher profits than regular smartphone memory. This leaves less chips for the phone. And DRAM and NAND prices have jumped by 50-60 percent in some cases.
Industry insiders now call it the “AI tax” on smartphones. Himanshu Verma, Founder and CTO, B Online Communication, said, “The rapid rise in mobile phone prices is driven by higher cost semiconductors, market supply-demand imbalance and greater need for high-performance computing. This trend makes this period very important for the Indian gaming industry.”
Impact on phone prices
| what changed | What does this mean for brands | What does it mean to you |
| Memory chip prices increased by 50-60% | The cost of making phones increased rapidly | Phones became costlier by Rs 1,500-3,500 |
| Supply diverted towards AI data centers | low chips for smartphones | delay, price revision |
| Shipping costs have increased due to West Asia tensions | import costs rise | further price pressure |
| Weak demand in budget segment | protect brand margins | Less discounts, less deals |
Budget phones were hit the most
Mid-range phones, once known for their “value for money”, are seeing the fastest rise in prices. Some phones which were earlier priced at Rs 18,000-20,000 are now priced around Rs 25,000.
Brands have limited options:
- raise prices
- Reduce RAM/Storage in newer models
- or accept the loss
| brand | price rise |
| Xiaomi | 32% |
| SAMSUNG | 36% |
| Vivo | 40% |
| opposition | 41% |
| real me | 53% |
There may be less damage on premium phones
Interestingly, premium brands prefer Apple And Samsung’s flagship S-series is in a better position. Their buyers are less price sensitive. These brands also have strong control over supply chains.
So while budget buyers will feel the pinch, premium buyers will not suffer a major blow.
(With inputs from Mosin Shaikh)
