Electronics Prices Set to Climb Again as Memory Chip Crisis Deepens
Thinking about buying a new smartphone or television? You might want to move quickly. Prices for electronic gadgets are heading upward once more. Industry experts warn consumers to expect increases of 4% to 8% over the next two months. This comes on top of sharp price jumps of up to 21% recorded just last November and December.
The Core Problem: Soaring Memory Chip Prices
The heart of the issue lies with memory chips. Their prices are escalating rapidly. Smartphone makers are struggling with rising costs. Demand for memory is surging, fueled by the fast adoption of artificial intelligence and high-performance computing systems. Executives warn these increases may not be temporary. They could become a regular feature, potentially happening every quarter or even monthly throughout the year.
Counterpoint Research describes the global memory market as entering a "hyper-bull" phase. After a price jump of roughly 50% in the previous quarter, another increase of 40% to 50% is expected this quarter. A further 20% rise is predicted between April and June.
How Brands Are Reacting to Higher Costs
Some smartphone brands have already started adjusting. Companies like Vivo and Nothing raised prices by Rs 3,000 to Rs 5,000 in January. Others, including Samsung, are taking indirect steps. They are reducing cashback offers and cutting down on discounts.
Tarun Pathak, Research Director at Counterpoint Research, explained the situation. He said memory prices might continue rising into 2026 and beyond. "While brands will account for this in new launches, there could be shrinkflation too," he noted. This means companies might cut corners on components like displays to manage costs.
Supply Constraints Worsen the Situation
Manufacturers are also pointing to severe supply issues. Several phone and television makers say memory chip availability has become a major bottleneck. Super Plastronics, which sells TVs under brands like Kodak and Blaupunkt, faces a critical shortage. The company can currently procure only about 10% of its required memory chip orders.
Avneet Singh Marwah, CEO of Super Plastronics, outlined their pricing strategy. "We increased prices by 7% in November, now increasing by 10% this month, and another 4% is planned in February," he said. He added that discounts during the upcoming Republic Day sales will be among the lowest seen.
Impact on Retail and Consumer Demand
The price impact is already visible in stores. Retailers report laptop prices have risen by 5% to 8%. Large television brands have communicated that further hikes are imminent.
Pulkit Baid, Director at Great Eastern Retail, stated plainly: "This price increase will impact immediate demand."
The All India Mobile Retailers Association (AIMRA) provided detailed figures. Smartphone prices climbed between 3% and 21% during November and December. The association, representing over 150,000 mobile stores, says signals from brands suggest cumulative price increases could reach 30% in the coming months.
Kailash Lakhyani, Chairman of AIMRA, warned of a market contraction. "This price shock is expected to lead to a significant contraction in the market, with 2026 shipment volumes projected to drop by 10-12%," he said. The sub-Rs 20,000 segment, which accounts for the highest sales volume in India, will feel the most significant impact. Consumers are already adopting a wait-and-watch approach.
Broader Market Forecast and Additional Pressures
Counterpoint Research has revised its forecast for India's smartphone market. It now flags the risk of a sharper downturn in 2026 than its earlier estimate of a 2% decline. The research firm cites higher memory costs and rising handset prices as the primary reasons.
A weaker Indian rupee against the US dollar adds further pressure on companies importing components.
The scale of the memory price surge extends beyond consumer gadgets. Data shows prices for server-grade components are also skyrocketing. For example, the price of 4GB RDIMM memory rose from $255 in September 2025 to $450 in December 2025. It could climb to $700 by March 2026.
