The cost of buying a new smartphone in India has gone up noticeably since late 2025. Brands such as Samsung, Vivo, Oppo, Realme, Xiaomi and Nothing have revised prices for several models, making many phones more expensive than they were a few months ago. In most cases, prices have increased by Rs 1,000 to Rs 3,500, while a few models have seen much larger hikes.
The biggest impact is being seen in the mid-range market, which continues to account for a large portion of smartphone sales in the country. With prices steadily rising, many consumers are delaying upgrades and instead getting their older devices repaired. Industry data from the beginning of 2026 also suggests weaker demand, with smartphone sales dropping by nearly 9 per cent compared to the previous year.
Smartphone companies are facing increasing production costs across the supply chain. Memory prices have gone up sharply and are now becoming nearly as expensive as chipsets in some cases. At the same time, AI firms are using a large portion of the global memory supply, leaving smartphone brands with fewer options and higher component costs.
According to Faisal Kawoosa, Chief Analyst and founder, Techarc, it will keep getting continuously difficult to get a 5 G smartphone in sub Rs 15,000, and if the trend continues, even in sub Rs 20,000. As the prices go up, the market will squeeze in terms of size. So the total sales by volume will also be affected this year. Usually, India sells 130-135 mn units a year; this year, we might see 115-120 mn units being sold.
Due to an increase in new smartphone prices, the second-hand market is likely to see the highest ever 5G smartphones this year.
“The second-hand market is likely to see the highest ever 5G smartphones this year. Due to the expected lesser availability of entry-level 5G smartphones, consumers will buy 2nd-hand 5G smartphones, which are now available in the market, as India is now in its 6th year of selling 5 G smartphones in large volumes.” Kawoosa told Financial Express.
In addition, the OEMs cannot pass on the entire cost increase to consumers. They will have to find other cushions that can absorb pressure.
Why are smartphone prices rising?
The recent increase in smartphone prices is mainly linked to the growing cost of important components such as DRAM RAM and NAND flash storage. Demand for these parts has increased sharply across the world, especially because AI-focused data centres are consuming large amounts of memory hardware.
Another major factor is the shift by manufacturers toward high-bandwidth memory (HBM), which generates higher profits compared to regular smartphone memory. This has reduced the supply available for smartphone production, adding more pressure on prices across the industry.
“Over the past year, we’ve seen a clear structural shift in the global smartphone ecosystem. The cost of critical components has risen, driven by the rapid expansion of AI, cloud infrastructure, and data centres. This has inevitably influenced smartphone pricing across markets, including India. At iQOO, our philosophy has remained consistent- rising costs should not dilute long-term consumer value,” Nipun Marya, CEO, iQOO noted.
What it means for consumers
Smartphones are gradually becoming more expensive in almost every category. Devices that once fit comfortably in the mid-range segment are now priced much higher, while premium phones continue to move further out of reach for many buyers.
People planning to buy a new smartphone may find better value during sale events or through bank and exchange offers.