Free NewsletterPro Login

Free Live Investors Workshop

Seats limited

Tue, Sep 29

The dollar is losing value.

Here’s how investors can still profit.

Hosted By

Jaspreet Singh

Founder, Briefs Finance

X

Warning: Undefined variable $stocks in /var/www/briefs.co/htdocs/wp-content/plugins/oxygen/component-framework/components/classes/code-block.class.php(133) : eval()'d code on line 448

Warning: foreach() argument must be of type array|object, null given in /var/www/briefs.co/htdocs/wp-content/plugins/oxygen/component-framework/components/classes/code-block.class.php(133) : eval()'d code on line 448

Warning: Undefined variable $funds in /var/www/briefs.co/htdocs/wp-content/plugins/oxygen/component-framework/components/classes/code-block.class.php(133) : eval()'d code on line 472

Warning: foreach() argument must be of type array|object, null given in /var/www/briefs.co/htdocs/wp-content/plugins/oxygen/component-framework/components/classes/code-block.class.php(133) : eval()'d code on line 472
/* the link was here */

Smartphone Sales in India Fall 10% Amid AI-Driven Memory Cost Surge

Published Jul 17, 2026
[tts_player]
Share:
Summary:
  • India's smartphone shipments fell 10% year-over-year in the April-June quarter, the steepest decline for that period in six years.
  • Memory chip makers are shifting production to high-profit AI chips, raising costs for standard chips used in phones.
  • Analysts forecast that elevated memory costs will continue through at least the end of 2027.

The Market Takes a Hit

India's smartphone market just hit a rough patch. The 10% drop is a sharper fall than China saw, where shipments slipped just 2% over the same period.

The pain is concentrated where most Indians shop. Roughly 60% of the market sits in the under ₹20,000 (under $210) price range. And the cheapest phones are getting crushed - shipments of models under ₹15,000 (under $150) fell 45% year over year.

Consumers are reacting exactly how you would expect. They are holding on to their phones longer, stretching the replacement cycle from about 3.5 years to 4 years. Others are turning to the secondhand market. Financing plans have become a key way to keep new phones affordable.

Why Phones Are Getting More Expensive

Three leading memory producers - Samsung, SK Hynix, and Micron - are diverting their manufacturing focus from standard DRAM and NAND chips, which typically go into smartphones and laptops, toward high-bandwidth memory chips designed for AI accelerators. Those AI chips are way more profitable, so manufacturers are chasing the money. The result: less supply of standard memory, which drives up prices for phone makers, who then pass the cost to you.

Price hikes vary by model but range from 4% to 68% depending on the phone.

Get the market news that matters in a five-minute read with Market Briefs, our free daily newsletter

"Sub-brands normally have overlaps and shared resources, and you need a minimum base to justify the cut-throat margins," said Tarun Pathak, a vice president at Counterpoint Research. "Profitability is the key to deciding market operations."

For Indian consumers, it gets worse. Kiranjeet Kaur, an associate research director at IDC, called it a double whammy: a weaker currency makes imports costlier, squeezing margins for brands, which then push those costs to shoppers.

Winners and Losers Among Phone Brands

Not every company is hurting the same way. Samsung actually grew shipments in India by 2% in the second quarter. Apple's shipments fell 3% in the quarter, hindered by production bottlenecks and stock deficits that restricted the number of iPhones it could ship.

Chinese brands as a group lost ground. The combined market share of Chinese brands in India dropped to a new low for a second consecutive calendar quarter, the weakest since 2020. OnePlus is a clear example - its share of global shipments going to India dropped from 30% to 19% in the first quarter, while its China share jumped from 59% to 74%. OnePlus has announced it will no longer introduce new devices in European and North American markets, signaling a retreat from less profitable regions.

Analysts expect more budget-focused brands to follow that pattern. When margins are razor thin and prices keep rising, the math stops working for the cheapest players.

The bottom line: This is not a temporary blip. IDC forecasts a double-digit decline for India's full second quarter. The first quarter already fell 4.1%, and the quarter before that dropped 5.3%.

What This Means for Your Wallet

On the downside, the main driver of higher phone prices is structural. Memory chip makers are chasing AI profits, leaving less capacity for standard chips. That imbalance is not expected to ease soon; analysts at IDC and Counterpoint predict elevated memory costs through at least the end of 2027. So do not expect a quick return to cheap phones.

The slightly better news: the pace of price increases should slow as buyers get used to the new normal. But that still means you will likely pay more for your next phone, or you will hold on to your current one even longer.

For anyone in India - or anywhere watching similar trends - the takeaway is practical. If you need a new phone soon, expect to pay a premium. If you can wait, the secondhand market is getting more attention. And if you are already on a financing plan, that trend is not going away.

The real shift here is structural. AI is hungry for memory chips, and that hunger is reshaping everything downstream - including the phone in your pocket.

Join Market Briefs, our free daily newsletter, for a quick daily rundown of the markets

Disclosure

Recent News

1 2 3 70

Get Market Briefs delivered to your inbox every morning for free!

No fluff. No noise. No politics. Just finance news you can read in 5 minutes.

Blogs

September 8, 2026
Why Is Everything So Expensive? Why Prices May Never Come Back Down
  • Official inflation is 3.4% and prices are up 32% since 2020, but rent (41%), gas (47%), car insurance (64%) and ground beef (79%) all outran the 28% median wage.
  • The Federal Reserve targets 2% inflation on purpose. Rising prices push extra dollars to investors and shrink the real cost of a $40 trillion national debt.
  • Investors who simply owned the S&P 500 gained about 150% over the same six years, and the Fed's September 16 decision will show whether it protects the dollar or the economy first.
Read More
September 7, 2026
The U.S. Housing Market Just Flipped: Renting a Home Now Beats Buying One
  • The US is in a buyer's market in 41 of the 50 largest metro areas, but prices sit near record highs and mortgage rates are close to 7%.
  • The same median house costs 27% more than it did in 2021 while the monthly payment costs 90% more, and incomes rose a little more than 10%.
  • A 2008-style crash is not showing up in the data, so the pressure is landing on buyers instead of prices.
Read More
September 4, 2026
An Interest Rate Hike in 2026? The Fed Just Broke Its Own Script
  • The Federal Reserve spent a year signaling cheaper money, and its new chairman just warned that an interest rate hike may be coming instead.
  • The Fed is stuck between high inflation and a weak job market, and fixing one makes the other worse.
  • Higher rates also reprice roughly a third of America's $40 trillion national debt this year, which is why Washington wants cuts so badly.
Read More
September 3, 2026
5 Passive Income Ideas That Pay You Whether You Work or Not
  • School teaches one formula: work, earn, spend. Stop working and the money stops, so the wheel never ends.
  • Five assets pay you without your labor - dividends, rent, interest, royalties, and the things you already own.
  • $80,000 a year of cash flow takes about $1 million invested at 8%, or roughly 20 years of $1,000 a month.
Read More
September 2, 2026
The Best Way to Invest 10k: Three Options To Transform 10K into 10 Million
  • Passive investing in stocks or real estate targets around 10% a year, and time in the market matters more than the price you get in at.
  • Active investing means putting your time in alongside your money, which raises the target to roughly 20% a year and raises the risk of losing it all.
  • Investing in yourself has no ceiling, because a new skill can create a new income that no market return can match.
Read More
September 1, 2026
The Tax Write Offs the Rich Are Using in 2026 While the IRS Shrinks
  • The 2026 tax brackets landed lower than they were headed, and the standard deduction jumped from a planned $8,350 to $16,100 for single filers.
  • New write offs for overtime, tips, seniors and car loan interest are live now, and most of them are written to expire in 2028.
  • About a third of IRS auditors have been fired, and four assets do most of the work for people who want income without a matching tax bill.
Read More
August 31, 2026
America Is Running Out of Debt Buyers. Treasury Bills Are the Government's Fix
  • The government took in about $5 trillion in taxes in 2025 and spent about $7 trillion, and the national debt is now over $40 trillion.
  • Investors, banks, and foreign countries are all lending less to the U.S., so starting September 9 the government plans to sell more short-term treasury bills and use that cash to buy back its long-term debt.
  • Government interest rates set the floor for your mortgage, your car loan, and your credit card, and short-term Treasury ETFs like SGOV are one way investors are playing it.
Read More
August 23, 2026
How to Get the Most From Your Guideline 401k
  • Guideline is a company that provides low-cost 401k plans, popular with small businesses and their employees.
  • A "Guideline 401k" follows the same core rules as any 401k: tax-advantaged growth, contribution limits, and often an employer match.
  • The biggest results come from capturing the full match, choosing low-cost funds, and picking Roth or traditional to fit your situation.
Read More
August 23, 2026
Principal 401k: What to Know About Your Plan
  • Principal is one of many companies that manage workplace 401k plans, so a "Principal 401k" is simply a 401k where Principal is the provider.
  • The rules of a 401k are the same no matter who runs it: pre-tax or Roth contributions, tax-advantaged growth, and often an employer match.
  • The biggest wins come from grabbing the full match, picking low-cost funds, and knowing whether Roth or traditional fits you.
Read More
August 23, 2026
What a Tariff Dividend Means for Your Money
  • A "tariff dividend" is the idea of taking money the government collects from tariffs and paying some of it back to citizens.
  • To judge the idea, you first need to know what a tariff is: a tax on imported goods, usually paid by the companies bringing them in.
  • Tariffs ripple through prices, businesses, and your investments, so the smart move is understanding those ripples, not just the headline.
Read More
1 2 3 26
Share via
Copy link