2026 to witness sharp increase in Smartphone costs; forecast of spike in selling price

NEW DELHI: Smartphone prices are expected to increase in the country from January next year. Experts in the sector warn that 2026 will be the year of price hike. Prices are likely to increase by up to 15 percent. Increasing prices was a consideration for most companies. However, many companies are not ready for this due to concerns about being left behind in the market competition.

Smartphone manufacturing companies are in a situation where they cannot hold on without increasing prices. The reason for the price increase is the sharp increase in manufacturing costs. The main reason for the price increase is the high cost of chips and other raw materials used to manufacture mobile phones. It is reported that there will be an increase of eight to 15 percent in manufacturing costs.

The manufacturing costs of key components in smartphones, such as processors, memory, displays, and camera sensors, have increased globally. The shortage in the semiconductor sector and high raw material prices have created a major crisis for manufacturers. More investment is required to manufacture 5G chipsets and AI-capable processors. The costs of this are also creating a crisis for companies. This is also a factor leading to price increases.

A large portion of smartphone components are imported. When the rupee depreciates against the dollar, import costs for companies increase. It is in this situation that companies are considering increasing the prices of various models.