Is memory chip crunch wiping out ₹10K smartphone market in India?
The Indian smartphone market is seeing a sharp decline in the sub-₹10,000 segment due to a global memory chip shortage and rising component costs. Analysts suggest that manufacturers are shifting focus to premium segments to maintain profitability, potentially leading to the disappearance of budget-friendly devices.
Why it matters
This trend threatens digital inclusion for price-sensitive consumers in India, as affordable technology becomes increasingly difficult to produce.
As memory chip crunch is forcing brands to repeated price hikes across smartphone segments , the budget tier seems to be facing an existential crisis as the margin in this segment has always been the thinnest. As per an IDC estimate, nearly 173 million sub-₹10K smartphones, which shipped last year, are facing an existential crisis. In Q2 2026, this segment [below $100 smartphone] saw an almost 60% year-over-year (YoY) drop. The decline is expected to continue for the rest of this year.
Memory prices are soaring with over 300% YoY increase, per IDC, and the trend is expected to continue until 2028. Smartphone makers will eventually move to a mid and premium segments to minimise the cost burden and help the market grow in value over volume.
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