Component Costs May Raise Smartphone Prices in India in Q2 2024, The pricing of smartphones in India may increase in Q2 2024, according to an ET Telecom article that cites recent TrendForce data.
Recent reports indicate that sales of smartphones have begun to increase in India and other areas; nevertheless, a shift in the price of a necessary component may cause smartphone prices to rise once more in the months ahead. A study states that there would likely be an increase in the price of memory chips from two component makers used in handsets sold in the nation. Budget 5G handsets, particularly those that cost less than Rs. 10,000, are probably going to be most affected by the anticipated price increase.
The pricing of smartphones in India may increase in Q2 2024, according to an ET Telecom article that cites recent TrendForce data. This is because Micron and Samsung intend to raise the price of their DRAM chips, which are a component of smartphone memory, by as much as 20% in the current quarter. An unnamed industry executive informed the publication that increased smartphone prices are anticipated in the upcoming quarter due to the cost increases.
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According to statistics from a market research organization, smartphones with LPDDR4x memory are expected to see a contract price increase of up to 8%, while smartphones with LPDDR5/LPDDR5x memory may see an increase of up to 10%. A DRAM scarcity is also anticipated in the upcoming months due to the hardware being used for AI and other applications, according to the research.
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Although this may result in higher-end costs, the analysis suggests that recent duty reductions on smartphone parts may help consumers offset some of the expected price increases. To keep the price of their phones low, manufacturers may potentially decide to offer smaller memory configurations on their next smartphones.
The article claims that manufacturers of low-cost 5G smartphones, who have started to provide more RAM and storage at reduced costs recently, may profit from this tactic. These companies are able to guarantee that the base models of their cheap handsets are priced under Rs. 10,000 by opting to reduce their memory configurations.
