India’s affordable smartphone market is being caught in the crossfire of two global forces beyond the control of manufacturers: an AI-led surge in demand for memory chips and a weakening rupee. The combination is driving up production costs, forcing brands to increase prices, trim specifications and rethink their entry-level portfolios.
India’s affordable smartphone market is facing an unprecedented cost squeeze. A global surge in memory chip prices caused by AI infrastructure demand and a weakening rupee are driving up handset manufacturing costs, forcing smartphone brands to raise prices, trim specifications and rethink the entry-level segment. India’s smartphone industry has little control over either pressure point, memory prices are set globally, while most critical components are imported and paid for in dollars.
Continue Reading with
CNBC-TV18 Access Membership
Priority Access and Networking: CNBC-TV18’s flagship events
Interaction with CNBC-TV18’s journalists
Webinars & LIVE Q&As with India Inc. Leaders
Exclusive CNBC-TV18 studio & newsroom tours
Premium business insights, expert opinions & analysis
Curated lifestyle privileges & offers
