AI Memory Chip Demand Triggers Smartphone Price Hikes in India

Smartphone prices in India have risen by ₹1,000 to ₹5,000 due to a memory chip shortage driven by surging artificial intelligence and data center demand.

Retailers report a significant drop in customer footfall and purchases, with budget phones becoming increasingly unaffordable for cost-sensitive buyers.

Counterpoint Research forecasts that global sub-$200 smartphone shipments will decline by approximately 40% between 2025 and 2030 due to component constraints.