Challenges Loom for Indian Smartphone Market Due to Rising Global RAM Prices
Synopsis
As global RAM prices continue to rise, Indian smartphone manufacturers are bracing for a difficult period. This surge is expected to impact shipment volumes and average selling prices significantly, posing challenges for the industry.
Key Takeaways
Indian smartphone manufacturers face challenges due to rising RAM prices.
RAM costs have surged, leading to a 25% decline in shipments.
Average selling prices have increased 8% since September.
Major brands like Motorola and Oppo report significant volume declines.
Smartphones became India's top export category, with $30.13 billion in exports.
New Delhi, March 15 (NationPress) Indian smartphone manufacturers are anticipated to encounter difficulties as a result of escalating global memory or RAM costs, which are likely to reduce shipment volumes and elevate average retail prices, according to a recent report.
The brokerage firm CLSA highlighted in its findings that Indian smartphone shipments saw significant pressure both year-over-year and sequentially in January, with a decline of approximately 25 percent attributed to a sharp increase in RAM costs that commenced in August 2025.
As previously reported by NDTV Profit, the price of RAM has surged by threefold compared to last year, driven by overwhelming demand from major artificial intelligence (AI) companies, which has redirected supply from the retail sector.
This increase in RAM prices has led to higher device pricing and concerns about availability, with industry insiders noting an 8 percent rise in average selling prices since September.
Nothing CEO Carl Pei has cautioned that smartphone pricing is expected to rise this year due to the RAM shortage, which CLSA predicts may continue at least until FY27. They noted that the entry-level segment is experiencing the most significant pricing pressures.
In a notable achievement, smartphones emerged as India's leading export category for the first time, with total exports valued at $30.13 billion from January to December. Apple represented a staggering 76 percent of these total smartphone exports.
India has ascended to become the world’s second-largest mobile phone manufacturer, with over 99 percent of the phones sold within the country. The 'Made in India' initiative has successfully advanced up the manufacturing value chain.
Point of View
The rising RAM prices present a complex challenge for the Indian smartphone industry. While the increased costs may impact consumers directly through higher prices, it also underscores the need for innovative solutions and strategic planning among manufacturers to sustain growth in a competitive market.
NationPress
1 Aug 2026
Frequently Asked Questions
Why are smartphone prices increasing in India?
Smartphone prices are rising in India primarily due to a surge in global RAM prices, which has been driven by high demand from major AI companies.
What impact will RAM price increases have on consumers?
Consumers can expect higher prices for smartphones and potential availability issues as manufacturers adjust to increased component costs.
Which smartphone brands are most affected by rising RAM prices?
Brands like Motorola, Oppo, and Realme have reported significant volume declines due to rising RAM costs and are facing challenges in meeting sales targets.
How has the Indian smartphone market performed recently?
The Indian smartphone market has experienced a notable decline in shipments, with volumes falling around 25 percent year-over-year as RAM prices have surged.
What is the future outlook for the Indian smartphone industry?
The outlook remains uncertain, with expectations that RAM shortages may persist until at least FY27, potentially continuing to impact pricing and availability.
