The ever-increasing prices of smartphones in India can be a cause of concern for companies. According to a new report, if phone prices keep rising at this pace, more than half of consumers may postpone their plans to buy a new smartphone during the festive season from July to December – or turn to second-hand devices. A joint report by *Trackin Tech* and *TechArc* states that 54% of customers who were planning to buy smartphones in the second half of the year are now at risk of withdrawing their demand. For this report, a survey was conducted among 5,958 potential buyers across the country.
**Expectation of increase in demand for second-hand phones**
According to the report, around 48% customers will wait for the prices to come down, while 6% customers may prefer to buy refurbished or pre-owned smartphones. If prices continue to rise at this rate, total smartphone sales in India could fall to 115-120 million units this year from an estimated 136-138 million units. Experts believe that the second-hand and refurbished smartphone market will benefit the most from this trend. This market share may increase from 23-25 million units to 30-32 million units this year.
**Why are smartphone prices increasing?**
Between January 2025 and May 2026, smartphone makers have increased the prices of many models. One of the main reasons for this is the rising global prices of NAND flash and DRAM memory chips. These chips are essential for the storage and memory functions of the phone. Its impact is most visible in the smartphone segment priced below ₹ 20,000; Prices in this category have increased by an average of 8% to 12%.
**Impact of AI and weak rupee**
According to Faisal Kawoosa, founder of *TechArc*, the prices of memory chips have increased due to the increasing demand from AI companies. Additionally, the weakening of the rupee against the US dollar – coupled with companies’ focus on profit maximization – have also contributed to the rise in prices. *Trackin Tech* founder Arun Prabhudesai said Indian consumers want better smartphones, but not at exorbitant prices. If companies do not control prices, consumers will postpone purchases or start choosing cheaper alternatives.