Why phones cost more this festive season: AI is eating the memory chips
What happened: Chipmakers are moving production towards the special high-bandwidth memory used in AI data centres. That leaves less ordinary memory (RAM and storage) for phones and laptops, so prices have risen sharply. According to IDC, India’s smartphone shipments fell 11.1% in April–June 2026, while the average selling price reached a record US$315, up 14.4% year on year. Business Standard reported that memory prices had quadrupled in a few quarters, with shortages expected into 2027, and Counterpoint expects smaller festive discounts this year.
Why it matters for you: budget phones, especially under ₹15,000, are under the most pressure. Some models may cost more, come with less RAM or storage, or disappear.
Buy smart:
- Decide what you need (camera, battery, storage) before you look at offers.
- Compare with last year’s model. It may now be the better deal.
- Check RAM and storage on the spec sheet, not just the price. A “new” variant may quietly have less.
- Consider certified refurbished phones from the brand or trusted sellers.
- Beware fake “festive sale” links on WhatsApp and SMS. Shop only on official apps and sites.
Read more: The hidden cost of AI: electricity and water.