AI Demand and Component Costs Push Smartphone Prices Higher
Smartphone prices are climbing as AI-related demand and higher component costs, particularly for memory, put pressure on manufacturers. This trend is making devices less affordable in price-sensitive markets such as India, where budget shoppers may find fewer appealing RAM and storage combinations. Buyers can look for better value by comparing actual selling prices, specifications, and software support.
Recent increases are not limited to premium devices. Samsung and Apple have announced higher prices, while Oppo, Vivo, and Nothing have followed, according to the report. The main cost pressure comes from DRAM and NAND memory, as AI data centers consume more high-end memory output.
In India, holiday-season smartphone unit sales are projected to fall 12% year over year, even as overall market value rises about 5%. Entry-level models face the greatest strain because buyers there are highly sensitive to price changes, leaving manufacturers with limited room to absorb component costs.
If prices keep climbing, budget-conscious buyers in India and similar markets may delay upgrades or choose older models, potentially widening the gap between those who can afford newer devices and those who cannot. Manufacturers could focus more on higher-margin devices, possibly reducing variety at lower price points. Consumers may need to compare actual selling prices, specifications, and software support to stretch limited budgets.