Smartphone Prices Set for Sharp Surge

Manufacturers are planning a hike of over 15 per cent as memory prices shoot through the roof.

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It's a worrisome trend.

More than 80 mobile phone models, out of roughly 200 sold in the country, have already seen average price increases of over 15 per cent.

Consumers should brace for another hit, say analysts at Counterpoint Research, based on feedback from mobile companies.

Manufacturers are planning a further average hike of over 15 per cent in the second quarter of calendar year 2026, as memory prices shoot through the roof.

Key Points

Over 80 smartphone models in India have already seen price hikes exceeding 15 per cent amid rising component costs.
Manufacturers are planning additional 15 per cent price increases in Q2 CY2026 due to sharp surge in memory prices.
Budget segment below Rs 15,000 faces maximum impact, with companies reducing specifications to control retail prices.
Global memory prices have surged up to 90 per cent, significantly increasing smartphone manufacturing costs across segments.
Higher prices and fewer launches have reduced demand, with India smartphone sales projected to decline 10 per cent.

Smartphone Price Hike India

There's more bad news.

Counterpoint Research Director Tarun Pathak says phone launches are becoming more expensive, with prices in many cases set to be 30-40 per cent higher than earlier estimates.

The Indian Cellular & Electronics Association (ICEA), alluding to feedback from its members, says the impact of rising memory prices has been most severe in the sub-Rs 15,000 segment, where prices have already risen by over 20 per cent.

"The impact is more severe at the lower end of the market, below Rs 15,000. Many companies are downsizing specifications -- reducing memory from 128 gigabyte (>GB) to 64 GB -- to keep prices under control," said a senior ICEA executive.

Budget Phone Cost Pressure

Research firm Techarc, which tracks mobile phone pricing, observes that while some smartphone models have become 25 to 35 per cent more expensive over the past year, the majority have seen increases of 7 to 15 per cent.

"Currently, brands are raising prices for select models where consumers can absorb the increase without a drop in demand. However, if memory prices rise beyond a point, there will be no option but to increase prices across models, even if it shrinks demand," said Faisal Kawoosa, founder of Techarc.

Mobile Specs Downsizing Trend

Global data shows dynamic random-access memory prices have risen by over 50 per cent year-on-year in the first quarter of CY 2026, while negative-AND flash prices are up 90 per cent in the same period.

As a result, the total manufacturing cost of an entry-level phone (priced below $200) has jumped by over 25 per cent.

Companies have little choice but to pass on these increases to consumers.

Counterpoint estimates overall retail price hikes of $30 to $60 for budget phones this year, and up to $200 for premium models.

Pathak says memory prices could rise by another 80 to 85 per cent in Q2 CY 2026, making them more than four times higher than in the third quarter of CY 2025.

Memory already accounts for 30 to 40 per cent of a phone's bill of materials cost.