Prices of smartphones under Rs 10,000 are poised to go north in the first quarter of 2014.
Recent reports have that a looming change in the costs of a crucial component in smartphones could lead to an increase in smartphone prices in the coming months.
According to insights from a recent telecom report published by a national daily, sourced from TrendForce data, the cost of memory chips utilised in smartphones is anticipated to go up.
Major component manufacturers, including Micron and Samsung, are reportedly planning to hike the prices of their DRAM chips—integral to smartphone memory—by as much as 20% in the current quarter.
This projected increase is likely to ring through the smartphone market, particularly impacting budget 5G smartphones, especially those priced under Rs. 10,000.
The implications of this cost surge are significant, with smartphones utilising older LPDDR4x technology expected to see price hikes of up to 8%, while those equipped with LPDDR5/LPDDR5x memory may experience increases of up to 10%.
Additionally, the report warns of a potential shortage of DRAM in the near future, as demand for the hardware extends beyond smartphones to applications such as artificial intelligence (AI).
Despite these challenges, recent duty cuts on smartphone components could provide some relief to consumers.
Manufacturers may also adopt strategies such as offering lower memory configurations on upcoming smartphone models to mitigate the impact on costs, reports suggest.
This approach, while potentially curbing price increases, may also affect the overall performance and user experience of the devices.
However, amidst the uncertainty, there is a glimmer of hope for budget 5G smartphone makers.
By adjusting their memory configurations and opting for lower specifications, these companies can strive to maintain competitive pricing, ensuring that base models of their handsets remain accessible to consumers below Rs. 10,000.