In what could come as a shocker for many Indian consumers, smartphone prices in the country could be set to rise from June this year owing to a rise in price of memory and the improved position of the Chinese Yuan, according to a report by the Economic Times.
The Economic Times report while citing market researcher firm Trendforce data noted that there is an upward trend in the prices of DRAM (memory chips) prices with at least 2 key suppliers – Samsung and Micron- looking to hike prices by 15-20% in the March quarter. The price hike could be owing to supply constraints caused by the accelerated AI adoption along with a gradual recovery in smartphone and PC markets.
“We anticipate a surge in memory prices, expected along the lines of 10-15% due to high demand in the third week of February to first week of March. If this happens, everyone will have to increase prices, but the recent duty cuts can help us nullify the impact to an extent,” the Economic Times quoted a Trendforce analysis as saying.
The report while citing anonymous smartphone industry executives noted that the impact of this price hike will be felt from next quarter onwards because most companies currently possess the necessary equipments to supply products in the March quarter.
The ET report notes that the price of memory chips could rise by around 10-15% by late February or start of March but the recent tax cuts could help nullify the impact of price rise in India.
Recently, the union government had decided to reduce the import duty on key components used for mobile phone manufacturing including battery covers, main lens, back cover, antennae, SIM sockets and other mechanical items.
Moreover, the report also cautions that brands may not end up increasing the prices of their smartphones but instead start offering lower memory and storage in the budget smartphone segment. Reportedly, the rise in cost of memory chips may also lead to slower adoption of 5G technology in India.
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Published: 06 Feb 2024, 11:57 AM IST
In what could come as a shocker for many Indian consumers, smartphone prices in the country could be set to rise from June this year owing to a rise in price of memory and the improved position of the Chinese Yuan, according to a report by the Economic Times.
The Economic Times report while citing market researcher firm Trendforce data noted that there is an upward trend in the prices of DRAM (memory chips) prices with at least 2 key suppliers – Samsung and Micron- looking to hike prices by 15-20% in the March quarter. The price hike could be owing to supply constraints caused by the accelerated AI adoption along with a gradual recovery in smartphone and PC markets.
“We anticipate a surge in memory prices, expected along the lines of 10-15% due to high demand in the third week of February to first week of March. If this happens, everyone will have to increase prices, but the recent duty cuts can help us nullify the impact to an extent,” the Economic Times quoted a Trendforce analysis as saying.
The report while citing anonymous smartphone industry executives noted that the impact of this price hike will be felt from next quarter onwards because most companies currently possess the necessary equipments to supply products in the March quarter.
The ET report notes that the price of memory chips could rise by around 10-15% by late February or start of March but the recent tax cuts could help nullify the impact of price rise in India.
Recently, the union government had decided to reduce the import duty on key components used for mobile phone manufacturing including battery covers, main lens, back cover, antennae, SIM sockets and other mechanical items.
Moreover, the report also cautions that brands may not end up increasing the prices of their smartphones but instead start offering lower memory and storage in the budget smartphone segment. Reportedly, the rise in cost of memory chips may also lead to slower adoption of 5G technology in India.
Milestone Alert!
Livemint tops charts as the fastest growing news website in the world 🌏 Click here to know more.
Here’s your comprehensive 3-minute summary of all the things Finance Minister Nirmala Sitharaman said in her Budget speech: Click to download!
Download The Mint News App to get Daily Market Updates & Live Business News.
More
Less
Published: 06 Feb 2024, 11:57 AM IST