Price hikes keep budget phone, TV buyers away

Kolkata: Sales of entry-level smartphones and televisions fell this year for the first time in more than a decade, as successive price hikes triggered by a surge in memory chip prices forced many first-time buyers to defer purchases, said market researchers and industry executives.

Demand for mid-range and premium handsets in contrast is continuing to grow at a faster pace than last year as memory chips make up a smaller share of their production costs, limiting price increases. The prolonged weakness in the entry segment has also prompted companies to prune model portfolios.