If you are planning to buy a new smartphone then you need to make a decision fast, as the devices are going to upscale their prices from June onwards. It has been reported that the price of smartphones might increase by 10 to 15 per cent, the report claims.
Though, the government reduced the customs duties on mobile phone components, before the budget. But you may still have to spend more to buy a new handset from June onwards. The reason for the increase in smartphone prices could be the increase in the price of memory chips (DRAM).
As per the ET Telecom report, industry experts anticipate that the increase in smartphone prices could be enforced by June 2024. Also, several experts are suggesting that the price gap for smartphones may narrow down once the government exempts import duties on components.
Increase in price of memory chip
In the report of Trendforce research firm, the reason for the increase in the smartphone’s price has been explained. The research firm says that chip manufacturing companies like Samsung and Micron are in the process of increasing the prices of their chips from March onwards. This may affect the prices of the devices which will be launched in June this year. People who are associated with the industry also say that the price of memory chips will increase by 15 per cent, which can increase the price of the phone.
OEMs (Original Equipment Manufacturers) currently have ample inventory this quarter, which is expected to prevent any immediate increase in smartphone prices for the upcoming two to four months.
The government's recent relief measures
Furthermore, the government's recent relief measures, which further include up to a 5 per cent reduction in import duty on components, will help in stabilizing the smartphone’s prices.
Also, another factor contributing to the rise in component prices which were used in smartphones has been identified.
Smartphones becoming expensive
It is all because of the strengthening of the Chinese currency, the Indian smartphone industry may have to spend more for components which are imported from China. Also, at the same time, the Central Government has been focusing on Make in India in the budget this year (2024). This will benefit the smartphone industry and will increase the budget to improve the communication infrastructure of the country.
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