Smartphone Demand in India: Rising prices have led to a decline in smartphone demand. In a survey, more than 50 percent of respondents said they might change their mind about purchasing a new phone due to the high prices.

Smartphone Demand in India: People are not buying phones because they are expensive

Smartphone Demand In India: The ever-rising prices of smartphones have been affecting the demand for smartphones for some time now. Due to the high prices, people are no longer buying mobile phones and there are indications that the demand is unlikely to increase this time, even during the festival season. A new study has revealed that people want to buy phones, but if the prices continue to spiral out of control, then about 54 percent of people may change their decision to buy a new phone. Let us tell you that smartphones are becoming increasingly expensive due to the shortage of memory chips and the rising cost of other components.

There will be a slowdown in the smartphone market

Previously, several reports had predicted that India's smartphone market could face a recession this year. In the first quarter of 2026, smartphone shipments declined by 3 percent. This is the first time in six years that such a decline has been recorded in the first quarter of a year. For the entire year, shipments are projected to decline by up to 10 percent. This means the recession will continue even during the festival season, which is typically characterized by strong sales for companies during the festival season.

The brakes are on demand

According to the latest survey, 54 percent of people have canceled their plans to buy a new phone due to high prices. Of these, 48 percent say they will buy a new phone once prices stabilize. Meanwhile, only 6 percent indicate they will buy their old phone . This shows that demand hasn't disappeared from the market; it's just on hold for now.

Why are mobile phone prices increasing?

Mobile phones are becoming more expensive due to the AI ​​boom . Companies that previously made memory chips for mobile phones are now producing chips for AI data centers. This has led to a shortage of consumer chips, and their prices have skyrocketed. Similarly, other phone components are also becoming more expensive, directly impacting phone prices. From January to May of this year, smartphone prices have increased by 8-12 percent. Many companies, including Samsung, OnePlus, Nothing, and Vivo, are now launching phones at increased prices, and prices of already launched models are also being raised.