Smartphone prices in India likely to rise in Q2 2024 due to rise in component prices: Report

According to recent reports, smartphone sales have started to pick up in India and other markets, but a change in the prices of an essential component could lead to a resurgence in smartphone prices in the coming months. According to a report, the price of memory chips used in handsets sold by two component manufacturers in the country is expected to increase. The expected price hike will have the biggest impact on budget 5G smartphones, especially those 10,000 priced below Rs.

According to an ET Telecom Reports Citing recent data from TrendForce, smartphone prices in India may increase in Q2 2024, as both Micron And Samsung plans to raise the price of its DRAM chips — a smartphone memory component — by 20 percent in the current quarter. An unnamed industry executive told the publication that smartphone prices are expected to increase in the coming quarter due to cost increases.

Data from the market research firm reportedly estimates contract prices of up to 8 percent for smartphones using older LPDDR4x technology and up to 10 percent for handsets with LPDDR5/LPDDR5x memory. The report also predicts a shortage of DRAM in the coming months as the hardware is used for other applications such as AI.

While this may translate into higher prices, the recent duty cut on smartphone components may partially cushion consumers from the expected price hike, according to the report. Manufacturers may also choose to offer lower memory configurations on their upcoming smartphones to keep the price of their phones low.

According to the report, this strategy could benefit budget 5G smartphone makers, who have recently started offering higher RAM and storage configurations at lower prices. By choosing to reduce their memory configuration, these companies can ensure that the base models of their budget handsets can be purchased for less than Rs. 10,000