Explainer: Why your smartphone now displays a hefty price tag

Smartphone prices across segments have risen in recent months, with hikes ranging from mid-single digits to around 20%, and sharper jumps in select models. The shift reflects a combination of higher component costs, recalibration of pricing strategies by manufacturers and global supply changes, explains Rishi Raj

What is driving the recent rise in smartphone prices?

The immediate trigger is a rise in the cost of key components, particularly memory chips used for storage and RAM. These parts account for a significant share of a smartphone’s bill of materials. Over the past year, global prices for memory have risen sharply, pushing up input costs for manufacturers.