Why memory-chip shortages push Indian phones higher in price

The Hidden Engine Behind Higher Phone Prices

Look, your next phone bill might jump by ₹1,000–₹2,000, and you haven’t even changed your plan. The reason isn’t a fancier camera or a new app store deal. It’s what’s inside the phone: memory chips. Since November 4, 2025, smartphone prices have climbed because NAND Flash, DRAM, and SSDs are costing more. This isn’t a rumor; it’s a real push on the price tag you see at checkout.

Memory costs aren’t just up in a corner of the market. They’re driven by a global shortage and a weaker rupee that makes imports pricier. Analysts warn we could see prices rise by up to ₹5,000 per device by the end of 2026. That’s a big bite for a consumer pocket.

The extra pressure comes as demand for high-end memory climbs with the rise of generative AI. More memory helps phones run smarter apps, more cameras, and faster tasks. But it also means more money goes into each device before it even leaves the factory. The result? Higher sticker prices for you, the everyday buyer.

The Ripple in Your Wallet

So, what does this mean for your pocket today? If you’re eyeing a mid-range upgrade, you’ll likely see an immediate bump of around ₹1,000–₹2,000 on models you’ve been considering. For flagship-adjacent kits, the uplift could be even bigger, and by 2026 you’ll be paying closer to that ₹5,000 extra mark on many devices.

Retailers aren’t shy about it either. They’re urging the government to cut GST on mobile phones from 18% to 5% to blunt the impact and keep digital access affordable for more Indians. If this relief doesn’t come, millions in smaller towns and lower-income households may delay upgrades longer, or settle for older tech.

Look, this isn’t just “the price of tech.” It affects how families plan budgets, how kids access learning apps, and how small businesses reach customers online. A few thousand rupees can determine whether a family can upgrade a phone this year or wait another cycle.

The Bigger Picture

Here’s the thing: memory demand isn’t slowing. Generative AI, better mobile experiences, and data-heavy apps push OEMs to source more NAND, DRAM, and SSDs. Add a slipping rupee and a global supply squeeze, and you get cost pressures that show up at the retailer’s display.