Smartphone Prices Set to Rise

Smartphone prices are rising further in India, with major brands including Realme, Oppo, Vivo, Samsung and OnePlus increasing prices of select models. Companies attribute the hikes to higher prices of memory components and chipsets, which have pushed up manufacturing costs. The price increases come at a time when consumers are becoming more cautious about spending amid inflationary pressures linked to the West Asia crisis. Counterpoint Research has also reported a significant decline in India’s smartphone shipments during the April-June quarter compared with the same period last year.

According to Upasana Joshi, Senior Research Manager at IDC Asia Pacific, average smartphone prices in India had risen by nearly 15% by June due to higher memory and chipset costs. With chip and other component prices continuing to rise, smartphone prices could increase by another 7–10% in the coming months, she estimated. Counterpoint Research analyst Shubham Singh said the sharp rise in production costs was forcing manufacturers to pass part of the additional burden on to consumers, while new smartphone models are also being launched at higher price points.