AI-led phone price hikes persist, hitting Indian customers
Phone affordability has taken a hit as a series of price hikes has put budget phones out of reach for many buyers, who are choosing to wait for sales or settle for less powerful devices
Smartphone prices are surging in India due to a demand for memory chips from AI companies and data centers, causing retailers to face a dwindling customer base. Vivek Singh, a 42-year-old phone retailer in South Delhi, reported seeing phone prices consistently rise for the first time in his 20-year career. According to the Hindu, price hikes have ranged from ₹1,000 to ₹5,000, with some budget phones' prices more than doubling.
AIMRA's founder chairman, Kailash Lakhyani, stated that while retailers are seeing higher margins on some Samsung phones, many customers are settling for less powerful devices or purchasing secondhand phones. Additionally, there is a potential GST cut for smartphones, which may encourage some customers to wait for discounts during the festival season.
However, this situation may worsen, with projections of a 40% decline in global sub-$200 smartphone shipments between 2025 and 2030.
Written by urgent.news from The Hindu's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
