AI-driven memory chip shortage is pushing up smartphone prices in India and slowing upgrades across the market.
AI-Driven Memory Chip Shortage Hits India's Smartphone Market
AI-Driven Memory Chip Shortage Is Driving Up Smartphone Prices in India India's smartphone market is showing one of the clearest real-world consequences of the artificial intelligence boom: consumers are paying more for new phones because memory chips are becoming harder and more expensive to source. During the April-June quarter, smartphone shipments in India fell sharply as rising component costs pushed handset prices higher. Analysts say the pressure comes from an unexpected source—the AI infrastructure race—which is absorbing manufacturing capacity that previously supplied memory chips for consumer devices.
The development matters well beyond India. As the world's second-largest smartphone market, India's buying patterns often provide an early indication of how supply chain shifts could affect other price-sensitive markets. What Happened? According to Counterpoint Research, smartphone shipments in India declined 10% year over year during the April-June quarter, making it t…
