Smartphone prices surge in India as memory costs soar, budget phones hit hardest: Report
Follow UsBuying a smartphone in India has become more expensive with brands raising prices across segments.
The biggest reason behind the price hikes is the rising cost of memory.
Memory prices are expected to remain elevated until 2028.
Buying a smartphone in India has become more expensive with brands raising prices across segments. OnePlus, Samsung, Oppo and other manufacturers have made multiple price revisions due to rising memory costs. The pressure has been especially high on budget phones, where higher component costs are harder for brands to absorb. Counterpoint Research says smartphone prices in India increased by an average of 16 per cent in the first half of 2026. However, OnePlus kept its average price increase to 8 per cent, making it one of the few brands to limit the impact of rising costs on buyers.
SurveyWhy are brands increasing smartphone prices?
The biggest reason behind the price hikes is the rising cost of memory. AI data centres have been soaking up DRAM and NAND supply. Also, a weaker rupee has made imported components more expensive. These reasons have forced smartphone makers to pass a large part of the increase on to consumers.
Budget phones take the biggest hit
Phones priced below Rs 10,000 saw the steepest price hikes, rising by around 32 per cent on average as higher memory costs now account for a larger share of their overall manufacturing costs. Shipments in this segment fell 65 per cent year-on-year, according to Counterpoint.
The Rs 10,000-Rs 15,000 segment also saw shipments decline 20 per cent. In comparison, phones priced above Rs 20,000 continued to grow, helped by trade-in offers, higher launch prices and no-cost EMI options.
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OnePlus raises prices less than rivals
OnePlus increased smartphone prices by 8 per cent on average during H1 2026. Its biggest individual price increase was 12 per cent. For the rest of the industry, the biggest increase was 113 per cent, according to Counterpoint.
OnePlus continued to grow. Its shipments increased 49 per cent quarter-on-quarter in Q2 2026. It was also the fastest-growing brand among the top five on online channels in smartphone segments above Rs 20,000.
According to Counterpoint, OnePlus stocked up on components earlier in the year. This allowed the company to secure memory at lower prices before costs increased sharply.
The brand also has nine active smartphone models priced between around Rs 16,999 and Rs 93,999. Its wider portfolio allows it to spread higher costs across different price segments.
Counterpoint Research Director Tarun Pathak noted, “The interesting part is not only that OnePlus raised prices less than the market, but that it kept growing in this period. In a cost shock scenario like this, brands usually have to pick between two choices – hold prices and give up margin, or protect margin and give up volume. OnePlus’s H1 numbers suggest it managed to avoid this, mostly because it secured components early and has a portfolio broad enough to spread the pressure instead of loading it onto one price band.”
Prices may remain high
The pressure on smartphone prices is unlikely to disappear soon. Counterpoint expects memory prices to remain elevated until 2028. “Going forward, memory prices are unlikely to come down before 2028, and the rupee continues to add to import costs, so the pressure on pricing isn’t going away,” the report reads.
