Smartphones will be expensive in India? China’s decision will have an impact on the market, know the reason here

Bad news is coming from China for smartphone buyers. In fact, the prices of smartphones are going to increase soon. Industry experts have warned of a possible price hike from June, driven by rising memory chip costs and the strengthening of the Chinese yuan.

Market research firm TrendForce has reported a rise in DRAM or memory chip prices. Major suppliers such as Samsung and Micron are expected to increase prices by 15-20% in the March quarter. This increase is due to the low supply of DRAM in 2024. These factors include the increasing use of artificial intelligence and high-performance computing, as well as the boom in the smartphone and PC market.

The impact of the strengthening of the yuan

The strengthening of the Chinese Yuan is also expected to increase smartphone prices. The Yuan has risen from a low of Rs 11.32 in June 2023 to Rs 12.08 in December, showing an increase of 6.7 percent. This has a direct impact on smartphone brands that are heavily dependent on Chinese components, with imports becoming more expensive.

Consumers will be affected

• Market analysts have warned that high smartphone prices could dampen consumer demand, which is just beginning to recover. To counter this, brands may resort to offering lower memory and storage options in budget phones rather than raising prices outright.
• This might limit features like 8GB RAM and 256GB storage which were previously available even for under Rs 10,000.
• Rising memory costs could also hinder the adoption of 5G smartphones in the sub-Rs 10,000 segment.