2 weeks ago
Rising memory prices push buyers toward cheaper 4G phones
Phones are getting more expensive in India.
One big reason is that the parts used to store photos, apps, and videos are costing more to make.
Phone companies like Redmi, Moto, POCO, and Lava cannot make super-cheap phones without losing money.
So they are making fewer very cheap phones.
Some brands are now selling 4G phones instead of 5G phones.
4G phones cannot use the newest fast internet, but they cost less.
A research company called IDC counted the phones sold in India.
They found that sales of the cheapest phones dropped a lot compared to last year.
The average price paid for a phone went up too.
Experts think phone prices will keep going up, so cheap phones may become harder to find.
Rising memory chip prices are increasing smartphone manufacturing costs, squeezing phones priced below ₹10,000.
In Q2 2026, India shipments of smartphones priced below $100 (roughly ₹9,000) plunged 74.3% year-on-year, with market share falling to 4.5% from 15.6%.
Overall India smartphone shipments declined 11.1% to 33.2 million units, while the average selling price hit a record $315 (around ₹28,400), up 14.4%.
Brands brought back or extended 4G models to keep prices low, and 4G smartphones accounted for 11.1% of Q2 shipments.
Affordable 4G options highlighted include the Redmi A5, Moto G05, POCO C71, Lava Bold N2, and Lava Smart 4.
IDC expects India's smartphone shipments to fall more than 15% in the second half of 2026, which could make affordable 4G options harder to find.
- Who
- Indian smartphone buyers and brands including Redmi, Moto, POCO, and Lava, as tracked by research firm IDC
- What
- Rising memory chip prices are making budget phones costlier, pushing brands to offer cheaper 4G models instead of 5G
- Where
- India
- When
- Q2 2026, with IDC forecasting further shipment declines in the second half of 2026
- Why
- Higher memory and storage costs leave manufacturers little room to absorb component costs on phones priced below ₹10,000
Key facts
- Market
- India smartphone market (IDC Q2 2026 data)
- Sub-$100 shipments
- Down 74.3% year-on-year
- Sub-$100 market share
- 4.5%, down from 15.6% a year earlier
- Overall shipments
- 33.2 million units, down 11.1% year-on-year
- Average selling price
- Record $315 (around ₹28,400), up 14.4%
- 4G share of shipments
- 11.1% in Q2
- H2 2026 forecast
- Shipments expected to fall more than 15%
Sources
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