Now Reading: Chip squeeze, weak rupee push gadget prices up 8-15%
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Chip squeeze, weak rupee push gadget prices up 8-15%
Prices of laptops and smartphones in India have risen 8, 15% over the past year, driven by semiconductor supply constraints, a weaker rupee, and surging demand for AI hardware. Flagship smartphones now…
The Story in Brief
Prices of laptops and smartphones in India have risen 8, 15% over the past year, driven by semiconductor supply constraints, a weaker rupee, and surging demand for AI hardware. Flagship smartphones now cost Rs 5,000, Rs 15,000 more than last season, while mid-range laptops are Rs 7,000, Rs 12,000 costlier, Livemint reports. Entry-level devices have seen smaller increases, but affordability is shrinking across categories.
Three factors are behind the price rise: chipmakers are prioritising AI chips over consumer electronics components, the rupee has weakened about 11% against the dollar in a year, and higher freight costs from the Iran-US-Israel conflict add to landed costs. The squeeze is likely to persist through at least 2027, according to International Data Corporation. Retailers expect festival-season electronics sales to fall 50% by volume and 30% by value this year, says research firm TechArc.
The Indian Opinion
The narrative that AI demand alone is mucking up gadget prices is lazy, the rupee's 11% slide and geopolitical freight shocks matter just as much here. The real test will be Diwali discount season: if brands offer deeper cuts than TechArc's dire forecast, the squeeze narrative is overblown. Otherwise, the refurbished market's growth is the canary in the coal mine for middle-class spending power.
Source: livemint.com
This story was synthesised by AI from the source linked above.
