Smartphone prices up by ₹2,000 in India, expected to rise further on increasing storage cost

Smartphone prices have gone up by up to ₹2,000 in India due to sustained price escalation of the storage components used in mobile phones, and is likely to affect new smartphone launches this year and in 2026 with prices expected to go up by up to ₹5,000. The new prices are effective from November 4, 2025. India Rupee depreciation against the U.S. Dollar also added to the cost.

The initial impact of this component cost inflation is already being passed on to consumers. The prices of Vivo’sT series, including T4 Lite 5G series and T4x 5G series, have already been increased by ₹1,500. Similarly, Oppo’s Reno 14 series and F 31 series have seen price hikes ranging from ₹1,000 to ₹2,000.

Samsung’s A17 model has increased by ₹500. Furthermore, Samsung supplies without a bundled charger will translate to an additional consumer cost of approximately ₹1,300, resulting in a net impact of ₹1,800 per device.

The All India Mobile Retailers Association (AIMRA) has issued a stern warning regarding an impending sharp and sustained increase in mobile phone prices, driven by a global surge in the cost of key storage components.

“The industry is grappling with a severe supply shock. The price of essential storage components like NAND Flash, DRAM, and SSDs has seen a dramatic, sustained escalation. As a direct result, the cost of all end-segment products will inevitably rise, a fact confirmed by leading Original Equipment Manufacturer (OEM) representatives,” said Kailash Lakhyani, AIMRA Chairman.

As per the document shared by OEMs, the prices of chips and memory components have been steadily increasing since August 2025. The continued shortage in memory supply has further intensified this situation, and as per industry research, the prices of chips, memory, and other key raw materials are expected to remain on an upward trend through the end of 2026.

Francis Wong, Head of Product Marketing, Realme Global, highlighted the issue on X saying, “2025 has brought a new challenge to the entire smartphone industry — a sharp, sustained rise in the cost of storage components like NAND Flash, DRAM, and SSDs. It’s not limited to one brand or price segment. Whether you’re building premium flagships or dependable mid-range devices, everyone is feeling the pinch.”

He added that AI revolution has rewritten the rules, creating massive demand for high-end memory that fuels data centers and machine learning systems. “The same chips once used in smartphones are now heavily pulled toward powering generative AI models — leaving the industry to rethink how we build, price, and innovate devices.”

The fluctuation of global prices and the strength of the U.S. dollar against Indian Rupee have amplified cost pressures on local assemblers. “We try our best to absorb the increased cost and not transfer such cost to consumers, and not impact our upcoming two new products in 2025,” said Mr. Wong.

“This immediate and significant pricing hike in the smartphone segment, which is a backbone of the digital economy, will cause our businesses to ‘nose down’ in the coming days, reversing the recent market gains,” warned Mr. Lakhyani.

The retail body has urged Government of India to address this critical issue immediately. It reiterated that Goods and Services Tax (GST) on mobile phones should be brought down to 5% from the current 18%, as this could be crucial to offset the global supply-chain cost increase, maintain market momentum, and ensure digital access remains affordable for the common citizen.