Smartphone prices rise as chip demand squeezes buyers

The Story in Brief

Several Android brands have raised mid-range smartphone prices by Rs 500 to Rs 5,000 this year, according to Beebom’s tracker, cited by Mint. The increases affect OnePlus, Nothing, Xiaomi, Realme, Vivo and Motorola models, sometimes without changes to specifications. Mint reports that AI infrastructure demand has pushed memory prices up fourfold, with further increases possible, according to Counterpoint Research’s Tarun Pathak. He expects Diwali offers to be 5% to 10% lower than last year.

Brands are also reducing specifications to hold prices steady. Mint cites the Realme 16 Pro, which retains its predecessor’s Rs 31,999 price but uses a weaker chipset and lower-resolution ultrawide camera. Buyers are delaying upgrades, repairing phones and choosing older or refurbished flagships. Counterpoint expects financing to fund 42% of Indian smartphone sales this year, up from 35% in 2025. Older devices offer savings, but have less software support remaining.

The Indian Opinion

The lazy narrative that every price increase is simply an unavoidable AI cost ignores quieter specification cuts and the real cost of EMIs. The opposite claim, that refurbished phones are always the smartest choice, also skips battery health, warranty and remaining software support. Buyers should compare like-for-like cameras, processors and update years, then add fees and GST to the monthly price. That total should decide the purchase.

Source: livemint.com

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