Memory Chip Crunch Threatens ₹10K Smartphone Market in India
The memory chip shortage is causing significant price hikes in India's budget smartphone segment, with a 60% YoY decline in sub-₹10K smartphones. Experts warn of a potential market wipeout unless business models change.
What Happened?
The memory chip shortage is causing significant price hikes in India's budget smartphone segment, with a 60% YoY decline in sub-₹10K smartphones. Experts warn of a potential market wipeout unless business models change.
AI Quick Summary
Memory chip shortages are threatening the sub-₹10K smartphone market in India, with significant sales declines and a shift towards refurbished devices.
Key points
- 173 million sub-₹10K smartphones shipped last year are at risk.
- 60% YoY drop in sub-₹10K smartphone sales in Q2 2026.
- Memory prices have increased over 300% YoY, expected to continue until 2028.
- Brands are cutting model launches and focusing on 4G phones as a temporary solution.
- Refurbished phones are becoming a viable option for budget-conscious consumers.
Key insights
- The budget smartphone segment is under severe pressure due to rising memory costs.
- Brands are shifting focus to mid and premium segments to maintain profitability.
- The decline in sub-₹10K smartphones may reshape consumer purchasing behavior towards refurbished devices.
- The future of budget smartphones looks bleak unless memory prices stabilize.
- 4G phones are being reintroduced as a temporary measure amidst rising costs.
Why it matters
The ongoing memory chip crisis could lead to the extinction of the sub-₹10K smartphone market, forcing consumers to either hold onto older devices or opt for refurbished options.
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Source
The Hindu
