Are you planning to buy a smartphone? You may prefer getting it before June; here’s why
The price of memory chips in India could rise by 10-15% by late February or early March, but recent tax cuts may help offset the impact. Brands may also start offering lower memory and storage in budget smartphones.
In what may come as a shock to many Indian consumers, smartphone prices in the country could rise from June this year due to a rise in memory prices and the improved position of the Chinese Yuan, according to a report in the Economic Times.
The Economic Times report, citing data from market research firm Trendforce, noted that there is an uptick in DRAM (memory chip) prices, with at least two key suppliers - Samsung and Micron - looking to increase prices by 15-20% in the March quarter. The price hike could be due to supply constraints caused by the accelerated adoption of AI, coupled with a gradual recovery in the smartphone and PC markets.
“We anticipate a surge in memory prices, expected along the lines of 10-15% due to high demand in the third week of February to first week of March. If this happens, everyone will have to increase prices, but the recent duty cuts can help us nullify the impact to an extent,” the Economic Times quoted a Trendforce analysis as saying.
The report while citing anonymous smartphone industry executives noted that the impact of this price hike will be felt from next quarter onwards because most companies currently possess the necessary equipments to supply products in the March quarter.
The ET report notes that the price of memory chips could rise by around 10-15% by late February or start of March but the recent tax cuts could help nullify the impact of price rise in India.
Recently, the union government had decided to reduce the import duty on key components used for mobile phone manufacturing including battery covers, main lens, back cover, antennae, SIM sockets and other mechanical items.
Moreover, the report also cautions that brands may not end up increasing the prices of their smartphones but instead start offering lower memory and storage in the budget smartphone segment. Reportedly, the rise in cost of memory chips may also lead to slower adoption of 5G technology in India.
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Business NewsTechnologyNewsAre you planning to buy a smartphone? You may prefer getting it before June; here’s why
First Published:6 Feb 2024, 11:57 AM IST
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