Memory chip prices are soaring: Here's how smartphone prices could be hit

Smartphone buyers face higher costs as memory chip prices surge. Rising DRAM and storage module costs are pushing brands to hike device prices affecting budget and mid-range segments through 2026

Smartphone buyers in India are set to pay more as memory and storage chip prices surge sharply. Analysts warn that rising contract prices (pre-agreed bulk prices between suppliers and brands) for memory modules are likely to continue through 2026, pushing brands to increase device prices and potentially impacting consumer demand.

 

Why are storage chip prices spiking so sharply?

 

Storage modules, which contain semiconductor chips that store permanent data in devices, have seen the steepest price hikes, climbing 20–60 per cent month on month across capacities, according to The Economic Times. Shortages are most acute for 1TB modules due to strong enterprise demand. Meanwhile, 512GB modules jumped over 65 per cent as older technology was phased out, and even 256GB modules are seeing sharp increases due to tight supply. 

   

Is DRAM also facing shortages?

 

Yes. DRAM (dynamic random access memory) modules, semiconductor chips used for temporary, high-speed data storage in smartphones, PCs and other devices, are also affected, though less severely. DRAM prices rose 18–25 per cent in November, mainly affecting budget smartphones and low-priced electronics. Experts say wafer-level supply shortages are unlikely to improve soon, and contract prices are expected to remain elevated in December.

 

How much more will memory costs rise?

 

Counterpoint Research forecasts memory chip prices could jump 30 per cent in Q4 2025 and another 20 per cent in early 2026, on top of the 50 per cent rise already seen this year, reported The Economic Times. The surge is driven by suppliers prioritising advanced chips for AI applications, tightening the supply of mainstream memory modules.

 

Are smartphone brands passing the cost to consumers?

 

Yes. Major smartphone brands including Vivo, Oppo, Realme and Transsion have raised prices of existing models by ₹500–₹2,000 since December 1. New launches are priced at least 10 per cent higher than before, mirroring the rise in component costs. Retailers expect this trend to continue through the first half of 2026, with relief likely only during the festive season. 

 

Which segments are most affected?

 

Budget smartphones are feeling the pinch the most, but mid-to-high-end devices could also see cost pressures. Notebook prices are climbing, and desktop PC components are in short supply. For many models, the bill of materials has increased over 15 per cent, squeezing margins and slowing growth, according to Counterpoint Research.