Why Are Phone Prices Increasing in India? The 2026 RAM Crisis Explained

If your next phone feels a lot more expensive than your last one, you're not imagining it. In 2026, almost every brand in India raised prices, some more than once. The iPhone 17 now starts at about ₹99,900 (it launched at ₹82,900). Samsung's Galaxy S26 went from ₹87,999 to ₹1,02,999 in September. Budget phones have been hit even harder.

Depending on whose data you read, average smartphone prices in India rose somewhere between 8% and 16% in the first half of 2026, after staying roughly flat through 2025. So why are phone prices increasing in India, will they come down, and what should you do if you need a phone now? Here's the plain-English answer.

The short answer

A global shortage of memory chips (RAM and storage), caused by AI data centres buying them up. This is the big one.
Brands are pushing AI and premium phones, which need even more memory, while cutting back on cheap models.
Every brand is passing the cost on. Apple, Samsung, OnePlus, Oppo and others have all revised prices this year.

Reason 1: The RAM crisis ("RAMageddon")

Every phone has two kinds of memory chips: RAM, which runs your apps, and storage (NAND flash), which holds your photos and WhatsApp backups. A handful of companies, mainly Samsung, SK hynix and Micron, make most of the world's memory.

Since 2025, companies building AI data centres have been buying enormous amounts of high-end server memory. Chipmakers have shifted their factories towards those more profitable products, so less is left for phones and laptops. The price jump has been dramatic. Market tracker TrendForce estimated that contract prices for regular DRAM rose 90–95% in the first quarter of 2026, and another 58–63% in the second quarter. Storage chips were forecast to rise 70–75% in Q2.

For a budget phone, memory is a big part of what it costs to make. One industry estimate puts it at up to 20% of a low-end phone's cost. When that part doubles in price, the phone simply can't stay at ₹12,999. So if you've been searching "phone price increase due to RAM", that's exactly what's happening.

Reason 2: AI features need more memory

On-device AI is memory-hungry. Apple Intelligence only runs on an iPhone 15 Pro or newer, and Android flagships are moving to 12GB and 16GB of RAM to run their AI features. So phones need more memory per device at the exact moment memory is scarce and expensive.

Brands are also focusing on premium models, where margins can absorb higher costs. The result is fewer genuinely good cheap phones, and higher prices on the ones that remain.

Reason 3: Brands have raised prices again and again

Phone	Launch price in India	Price after 2026 hike
iPhone 17 (256GB)	₹82,900	₹99,900
iPhone 17 (512GB)	₹1,02,900	₹1,24,900
Samsung Galaxy S26 (12GB/256GB)	₹87,999	₹1,02,999
iPhone 18 Pro	Launched at ₹1,64,900, ₹30,000 more than the iPhone 17 Pro's launch price

OnePlus, Oppo and other brands have also made multiple price revisions in 2026, and reports consistently say budget and mid-range phones are feeling it most.

Mobile price hike kab khatam hoga? When will phone prices come down?

Honest answer: not soon.

TrendForce expects the storage chip shortage to start easing only in the second half of 2027.
Samsung told investors that memory shortages will get worse in 2027, with tight supply lasting through 2028.
Counterpoint Research has said memory supply and demand may not normalise until 2028.
IDC expects global smartphone shipments to fall 12.9% in 2026 as prices bite.

सीधी बात: 2026 में फोन की कीमतें कम होने की उम्मीद बहुत कम है, और 2027 में भी बड़ी राहत मुश्किल लगती है।

If you're waiting for prices to drop before buying, you could be waiting until 2028. For most people, that isn't a plan.

What Indian buyers are doing instead

Keeping their phones longer. Counterpoint says smartphone replacement cycles are now stretching towards four years, driven by higher memory and component costs.

Switching to refurbished and pre-owned. According to Counterpoint, India's refurbished smartphone volumes grew 13% year-on-year in H1 2026, while new phone volumes fell about 11%. It expects the refurbished market to grow 16% in 2026, led by Samsung (30% share) and Apple (23%).

Buying better used phones. Cashify's Great Indian Upgrade 2026 report found that the share of refurbished phone sales above ₹45,000 rose from 10.9% in 2024 to 17.4% in 2025. People aren't just buying cheap used phones. They're buying used flagships. We covered more of that report in why the iPhone 13 leads India's used phone demand.

Spreading the cost. Counterpoint expects financing (EMI) to account for about 42% of smartphone sales in India in 2026.

One warning: Counterpoint says only about 20% of India's refurbished market is organised. The other 80% is unorganised sellers, which is where most scams and stolen phones show up. If you're buying used, read our 16-point checklist and how to check if a phone is stolen.

The good news: phones are being built to last longer

While prices rise, rules around the world are pushing phones to stay useful for longer, and that makes a used phone a safer bet than it was five years ago.

Europe's ecodesign rules for smartphones have applied since 20 June 2025. Batteries must keep at least 80% capacity after 800 charge cycles, and key spare parts must be available for at least 7 years after a model stops being sold. Brands sell largely the same phones worldwide, so Indian buyers benefit too.
The EU Right to Repair Directive (2024/1799) has to be written into each EU country's law by 31 July 2026. It makes repair cheaper and more accessible than replacement.
India's Right to Repair portal, launched by the Department of Consumer Affairs in 2022, connects consumers with brand repair information and service. A government committee has also recommended a repairability index for smartphones and tablets.
USB-C everywhere. India adopted BIS standards for USB-C in 2023, and every iPhone since the iPhone 15 uses it, so one cable now charges almost everything.

What this means for you: a well-checked two- or three-year-old phone has plenty of good years left. Parts, repairs and software support are lasting longer than ever.

5 smart ways to beat the 2026 phone price hike

1. Buy certified pre-owned instead of new

This is the biggest saving. On our own listings (31 October 2026), a pre-owned iPhone 17 started at ₹70,090, against ₹99,900 new. The iPhone 15 Pro, the cheapest iPhone that runs Apple Intelligence, started at ₹56,690. Our 2026 buying guide covers every budget. If the labels confuse you, read refurbished vs second-hand: what's the difference.

2. Buy last year's flagship, not this year's mid-ranger

For the price of a new mid-range phone in 2026, you can often get a one- or two-year-old flagship with a better camera, better build and longer software support.

3. Replace the battery, not the phone

If your phone still works well but the battery is tired, a new battery costs a fraction of a new phone. Check if it's time with our iPhone battery health guide.

4. Choose storage carefully

Memory is the expensive part right now, and the bigger storage variants have taken the biggest hikes. The 512GB iPhone 17 went up by ₹22,000. If you back up photos to the cloud, 128GB or 256GB is enough for most people.

5. Spread the cost with EMI

Rather than stretching for a new phone you can't comfortably afford, pay for a quality pre-owned one in instalments. At The Digital Hub, you can choose 3, 6, 9 or 12-month EMI on credit cards, debit cards or bank balances via PayU.

What not to do: don't chase "too good to be true" deals from unknown WhatsApp or Instagram sellers to save a bit more. Price hikes have brought more scams with them. Here's what to watch out for.

Beat the price hike at The Digital Hub

We've been selling pre-owned phones for 12 years, with 1,00,000+ devices sold across our Gandhinagar and Ahmedabad showrooms. Every device is 100% original, IMEI-verified, passes a 120-point inspection and comes with at least a 3-month warranty, 7-day returns and a GST invoice. Battery health is shown on every iPhone listing.

Browse pre-owned iPhones, Samsung phones or all devices. You can also visit our showrooms in Gandhinagar, South Bopal and Bodakdev, or WhatsApp us your budget on +91 8980 700 700.

Frequently asked questions

Why are phone prices increasing in India in 2026?

Mainly because of a global shortage of memory chips (RAM and storage). AI data centres are buying huge amounts of memory, chipmakers have prioritised them, and prices for phone memory have roughly doubled. Brands are passing that cost on to buyers.

Is the RAM shortage the reason for the phone price hike?

Yes, it's the biggest single reason. Memory makes up a large share of what a phone costs to build, especially for budget and mid-range models, so those have been hit hardest.

Will phone prices go down in 2027?

Probably not by much. Forecasts suggest storage chip supply may start improving in late 2027, but memory makers and analysts expect tight supply to last into 2028.

Should I buy a phone now or wait?

If you need a phone, buy now rather than wait. Prices are more likely to rise than fall over the next year. Buying certified pre-owned is the easiest way to get good value.

Is it better to buy a refurbished phone in 2026?

For many people, yes. With new phone prices up sharply, a certified refurbished or pre-owned flagship from a seller with a warranty and returns gives you far more phone for your money. That's why India's refurbished market is growing while new phone sales fall.

Which phones got costlier in India in 2026?

Most of them. Notable hikes include the iPhone 17 (₹82,900 to ₹99,900) and the Samsung Galaxy S26 (₹87,999 to ₹1,02,999), along with price revisions from OnePlus, Oppo and other brands, especially in budget and mid-range models.