Why Phone Prices Are Rising in India: The Memory Shortage Explained, and When It Might Ease

If your next phone or laptop costs more than you expected, the main reason is not a brand's greed. A global shortage of memory chips, the RAM and storage inside every phone and laptop, has pushed up what makers pay for them. Analysts say prices have risen sharply over the past year and may not settle before 2027. Here is what is happening, how it shows up in India, and what you can do about it.

What is behind the shortage

Memory makers have been moving their factory capacity towards chips for AI servers and data centres, because those chips earn more. That leaves less capacity for the memory used in phones and PCs. TrendForce, a market research firm, says AI server demand is the main force keeping memory prices high, and it describes the pressure on consumer devices as continuing.

In India, two other things add to the cost. Analysts have pointed to the weaker rupee, which makes imported parts costlier, and to the conflict in West Asia, which has disrupted shipping routes. CMR, a research firm, estimates that 55% to 60% of the rise in the average price of phones in India comes from memory and 20% to 25% from the rupee's fall, with the rest from logistics and other costs.

How big the rise is

Counterpoint says memory prices have risen about four times over the past three quarters. TrendForce expects the increases to continue but to slow down. For October to December 2026 it forecasts:

• Conventional DRAM (the RAM used in phones and PCs) contract prices up 10% to 15% on the previous quarter.
• NAND flash (the storage chips) contract prices up 15% to 20%.
• Growth in mobile DRAM prices to slow, because phone brands are using up the stock they already hold instead of placing big new orders.

What it has done to phones in India

The cheapest phones are hit the hardest, because memory is a bigger part of their cost. Counterpoint says phones under Rs 15,000 made up 41% of India's market in the last quarter of 2025 and 33% in the first quarter of 2026. Industry body AIMRA, whose data was reported in April, shows price rises of nearly 53% for Realme, 41% for OPPO, 40% for Vivo and 32% for Xiaomi. It did not state the period, so treat those as rough guides. AIMRA has also warned that entry-level phones from big brands could start at Rs 20,000.

You can see this in recent price changes. Read our reports on the OPPO Reno 16 price hike and the OPPO K14 Plus 5G price hike.

Laptops and PCs

PCs are affected too. TrendForce says laptop makers are paying more for components, and that some PC brands are cutting the storage in mainstream models to hold prices down. It also expects global notebook shipments to fall by a low single-digit percentage in 2027 as higher costs reach buyers.

When could prices ease?

Nobody agrees on a date. Counterpoint says component prices are unlikely to return to normal before 2027. Other analysts quoted this year point to late 2027 or even early 2028, and TrendForce says memory supply is likely to stay tight through 2027. Treat any single date as a guess.

What you can do

• Do not pay extra for memory you will not use. The jump between storage versions is larger than it used to be. For most people, the base version is enough.
• Compare during sales. Festive sale prices and bank offers can take back some of the rise. See our OnePlus Diwali sale prices and our Xiaomi Diwali sale price check.
• Do not wait for a drop that may not come. If your phone or laptop is failing, buying now is reasonable. If it works, you can wait.
• Check the real price at checkout. A crossed-out price can be far above what a phone ever sold for.

We will update this post when analysts change their forecasts or when more brands announce price changes.