NEW DELHI — Indian smartphone makers could face a challenging period as rising global memory prices begin to squeeze shipment volumes and push device prices higher, according to a new report by brokerage CLSA.
The report said smartphone shipments in India declined sharply in January on both a year-over-year and sequential basis, with volumes falling about 25 percent. CLSA attributed the drop largely to a surge in global RAM prices that began in August 2025.
RAM prices have reportedly tripled since last year amid unprecedented demand from major artificial intelligence companies, which has diverted supply away from the consumer electronics market.
The increase in memory costs has already begun translating into higher smartphone prices and tighter availability. Industry sources say average selling prices for smartphones have risen about 8 percent since September.
Nothing CEO Carl Pei has previously warned that smartphone prices could rise this year because of the global RAM shortage. CLSA expects the supply crunch to persist at least until fiscal year 2027, with the entry-level smartphone segment facing the most pressure.
The brokerage said major handset brands such as Motorola, Oppo and Realme — which source components from Dixon Technologies — have seen annual shipment declines ranging from 20 percent to 68 percent.
CLSA also raised concerns about whether component manufacturers will be able to meet fiscal-year guidance and growth targets for FY27 as the supply constraints continue.
Despite the current challenges, smartphones have emerged as India’s largest export category for the first time, with exports totaling $30.13 billion during the January–December period. Apple accounted for about 76 percent of the country’s total smartphone exports. (Source: IANS)
India has also become the world’s second-largest mobile phone producer, with more than 99 percent of phones sold domestically manufactured in the country. Industry analysts say the “Made in India” ecosystem is now moving further up the manufacturing value chain.
