If you’ve been planning to upgrade your smartphone, you might want to pause. Across India, major brands like Samsung Electronics, Oppo, Realme, Xiaomi, and Nothing have quietly increased prices since late 2025.

In many cases, smartphones now cost ₹1,000 to ₹3,500 more than before, with some models seeing hikes of up to 40%. And it’s the middle-class buyer, especially those shopping in the mid-range segment, who are feeling the biggest impact.

The price surge is already changing buying behaviour. Instead of upgrading, many consumers are choosing to repair their existing devices.

Smartphone sales in early 2026 are down nearly 9% year-on-year. 

What’s causing the smartphone price hike?

The real reason lies inside your smartphone, specifically in memory chips.

Two critical components:

  • DRAM (for multitasking)
  • NAND (for storage)

These chips have become significantly more expensive, in some cases, prices have jumped 50–60%.

Here’s where things get interesting.

What is the “AI Effect” (or AI Tax)
Tech giants like Nvidia are driving massive demand for high-bandwidth memory (HBM), a more advanced type of memory used in AI data centers.

As a result

  • Memory manufacturers such as Micron Technology and SK Hynix are shifting production toward AI-focused chips. 
  • Less supply is left for smartphones
  • Prices for standard memory components are rising sharply

Industry experts are calling this trend an “AI tax” on smartphones.

Mid-range phones hit the hardest

The biggest shock is in the mid-range segment, once known for offering the best value. Phones that earlier cost ₹18,000–₹20,000 now retail closer to ₹25,000.

  • Budget-conscious buyers are getting priced out
  • “Value-for-money” is becoming harder to find

Interestingly, premium smartphone buyers are relatively insulated.

Brands like Apple and Samsung’s flagship lineup:

  • Face less price sensitivity
  • Have stronger supply chain control
  • Can absorb cost fluctuations better

So while mid-range users feel the squeeze, high-end buyers may not notice dramatic changes.