Chip squeeze hits Chinese smartphones as Apple, Samsung gain an edge
Rising memory chip costs are forcing budget-friendly Chinese smartphone brands in India to increase prices, pushing consumers toward premium alternatives like Apple and Samsung. Experts suggest the era of sub-$150 smartphones is ending as manufacturers struggle to maintain affordability.
Why it matters
This shift in the Indian smartphone market reflects broader global supply chain pressures and changing consumer behavior in price-sensitive economies.
Hello, this is Priyanka Salve, writing to you from Singapore.
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Chinese brands dominate the Indian smartphone market, claiming four out of the top five spots, as their low-priced and feature-rich phones appeal to the cost-conscious Indian consumer.
But as memory prices surge and Chinese phone-makers pass on those costs, customers are beginning to gravitate toward premium brands such as Samsung and Apple, as financing options improve affordability.
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Rising memory chip costs are having a contrasting effect on the fortunes of budget Chinese brands and mid-market and premium American and South Korean smartphone companies in India, the world's second-largest market by volume.
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