Now Reading: Chip shortage, AI boom push smartphone prices up
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Chip shortage, AI boom push smartphone prices up
A global chip shortage, driven by AI infrastructure demand, is pushing smartphone prices up. Mid-range Android models from OnePlus, Xiaomi, Realme, Vivo, and Motorola have seen hikes of Rs 500 to Rs…
The Story in Brief
A global chip shortage, driven by AI infrastructure demand, is pushing smartphone prices up. Mid-range Android models from OnePlus, Xiaomi, Realme, Vivo, and Motorola have seen hikes of Rs 500 to Rs 5,000 this year, according to Beebom's price tracker. Memory chip costs have risen fourfold and could reach five times, says Counterpoint Research. Brands are either raising prices or trimming specs, as seen with the Realme 16 Pro. Apple has kept pricing stable so far. Consumers are delaying upgrades, choosing older or refurbished models, and using EMI options, now accounting for 42% of sales.
The Indian Opinion
News of rising phone prices and reports of deep Amazon discounts at the same time are a study in contrasts. This is not a contradiction but a market splitting: festive sales on old stock meet relentless cost pressure on new models. The smart buyer will check the exact specifications and manufacturing date, not just the discount percentage. The real test is whether Diwali offers this year truly beat summer prices, or if the 'sale' is mostly on devices quietly downgraded inside.
Sources (2): livemint.com, businesstoday.in
This story was synthesised by AI from the 2 sources linked above.
Updated: this story now draws on 2 sources.
