Old stock turns gold for retailers as smartphone prices rise amid memory cost inflation

New Delhi: India’s smartphone industry is facing the ripple effects of ‘memflation’ or memory cost inflation with retailers reaping a temporary profit gain due to higher product prices while distributors struggle with enhanced investment needs for adding inventory. Companies, on their part, are facing a squeeze in component supplies and input pricing pressure, causing operating headwinds.

Many retailers are selling handsets at prevailing higher prices bought at historical lower rates, effectively pocketing a larger margin on each sale.