Even before the launch of the new iPhone 18 series, it has become clear that buying a new iPhone will be an expensive deal. Apple CEO Tim Cook recently indicated that it is no longer possible to sell devices at old prices amid rising memory chip prices. Although the company has not yet officially increased the MRP of the iPhone, it has started reducing the special discounts and cashback support given to retailers. The impact of this is already visible in the market, where the big discounts previously available on the iPhone 15 and iPhone 16 series are no longer available.
However, this story is not limited to Apple only. The smartphone industry is currently facing the challenges of rising prices, expensive memory chips, weak rupee and global supply chain. Data from Counterpoint Research, IDC and AIMRA shows that many big companies have already increased smartphone prices. Brands like Samsung, Xiaomi, Realme and OnePlus have increased the prices of their phones. But the question is: is this just the beginning? Can smartphone companies impose additional burden on customers, and what impact will this have on Indian customers?
Companies are gradually increasing prices
Data from Counterpoint Research, IDC and All India Mobile Retailers Association (AIMRA) shows that there has been a huge increase in the cost of key components like memory chips, processors, camera sensors and batteries. Apart from this, weak rupee, rising import costs and global supply chain challenges are increasing pressure on companies. Manufacturing costs are continuously increasing, making it difficult for companies to sell devices at the same prices. As a result, many brands are gradually increasing the prices, which is directly impacting the pockets of the customers.
present situation
Memory chip prices have increased by up to 400% in three quarters.
Vivo, Oppo, Realme and Xiaomi have already increased the prices of many models.
It is becoming difficult to find a good 5G phone under ₹10,000. Indian smartphone shipments declined by 3% in the first quarter of 2026.
**Demand for memory chips increased due to increasing trend of AI**
The increase in memory chip prices is the main reason for smartphones becoming expensive. Due to the rapid expansion of AI, companies like Nvidia, OpenAI, and Google are building large-scale data centers. These data centers require DRAM and NAND flash memory. Chip making companies are now giving priority to AI sector instead of smartphone companies because it brings more profits. According to Counterpoint Research, memory chip prices have increased nearly 400 percent over the past three quarters; The memory that used to cost $20 now costs up to $75. This has a direct impact on the cost of making smartphones.
**Cost of making phones increased**
Industry reports suggest that earlier the cost of RAM and storage was 10 to 15 percent of the total cost of a smartphone; Now this figure has reached between 30 to 40 percent. Additionally, new processors supporting AI features, larger camera sensors, and larger batteries have also increased the cost of production. Providing premium features in low-cost phones is a big challenge for companies. As a result, many brands are launching new models at higher prices than their older models.
**Which companies have increased prices?**
The price hike is not limited to Apple alone. Data from AIMRA and Counterpoint shows that Vivo has increased the prices of many of its models by 18 to 40 percent. Some models of Oppo have become costlier by 9 to 41 percent. Xiaomi has increased prices by 3 to 32 percent, while Realme has increased prices by 6 to 53 percent. In many cases, the new Realme models have been launched at a price of ₹5,000 to ₹15,000 more than the older versions. At the same time, Motorola’s budget 5G phones – which were earlier available for around ₹9,999 – are now available at ₹11,999 or more.
The premium segment is also not untouched by this
Brands like Samsung, OnePlus and iQOO have also not been able to escape the pressure of rising costs. According to reports, Samsung’s flagship Galaxy S26 Ultra has been launched at a price of about ₹ 10,000 more than the previous model. OnePlus and iQOO have also increased the prices of their new smartphone models by ₹5,000 to ₹12,000. At the same time, Carl Pei, CEO of Nothing, has admitted that the prices of phones priced above ₹ 30,000 are increasing by an average of ₹ 7,000.
What impact will this have on customers?
The effect of rising prices is already visible in the market. According to Counterpoint, smartphone shipments in India declined by 3% in the first quarter of 2026 – the worst performance in the last six years. It is estimated that the market may decline by up to 10% in the entire year. The budget segment has been impacted the most; Good 5G phones under ₹10,000 are now rarely available. Customers now have to shell out ₹20,000 to ₹25,000 for phones that used to cost ₹15,000 earlier. As a result, the market for refurbished smartphones is growing rapidly.
What will happen next?
The rise in smartphone prices does not seem to be a temporary change. Industry experts believe that memory chip shortage and cost pressure may persist till the end of 2027. As a result, the deep discounts available during the festive season may not be as big as they used to be. If the current trend continues, smartphones not only from Apple but also from Samsung, Xiaomi, Realme, OnePlus and other companies may become more expensive in the coming months.
What options do users have?
Despite rising smartphone prices, customers have no shortage of options. The first way is to use your existing phone for a longer period of time; In fact, in recent months, people have been using their old devices instead of upgrading.
Another option is to choose a refurbished—that is, previously used—smartphone. Industry reports indicate that the market for refurbished phones is growing rapidly due to the higher prices of new phones; This year their sales are expected to increase from 25 million units to 32 million units. Additionally, many customers are now choosing mid-range smartphones instead of flagship models to get better features without putting too much of a burden on the budget.
