If you are planning to buy a smartphone, you may have noticed a shift — new models are launching at higher prices, while devices released just months ago are now selling at a premium.

This is not a glitch. In many cases, smartphones now cost Rs 2,000 to Rs 3,500 more than their launch prices within months. At the same time, newer models are debuting at significantly higher prices than their predecessors, with some seeing increases of up to Rs 15,000 across generations.

The trend is visible across brands and price segments, driven largely by rising component costs, supply constraints and broader economic pressures. At the centre of it is a sharp increase in memory costs.

Smartphones are seeing post-launch price hikes

One of the clearest signs of this shift is price increases after launch — something that used to be rare in the smartphone market.

Brands such as OnePlus, Samsung, Vivo and Nothing have begun revising prices upwards after initial launch.

Samsung has made similar revisions. The Galaxy M36 5G, launched in June 2025 at Rs 17,499, is now priced at Rs 20,999. Other models such as the Galaxy M06, Galaxy F06 and Galaxy M17 5G have also seen increases.

Vivo’s pricing has moved in the same direction. The Vivo V70, launched in February 2026 at Rs 45,999, is now selling at Rs 49,999, while the Vivo V70 Elite has risen from Rs 51,999 to Rs 55,999.

Even newer players are not holding prices. The Nothing Phone 3a Lite, launched at Rs 20,999, is now listed at Rs 21,999 on Flipkart, while the 256GB variant has gone up from Rs 21,999 to Rs 23,999.

New launches are starting higher

It is not just older models becoming expensive. New smartphones are also launching at higher starting prices.

Samsung’s Galaxy A56 launched in March 2025 at Rs 41,999, while the Galaxy A36 started at Rs 32,999. Their successors — the Galaxy A57 and Galaxy A37 — now start at Rs 56,999 and Rs 41,999, respectively.

These increases are not always matched by major hardware upgrades. For instance, the Galaxy A57 largely adds a newer chip and AI-driven features, while overall hardware changes remain incremental.

There are some exceptions. Apple’s iPhone 17e, launched earlier this year, starts at Rs 64,900 for 256GB storage, compared to Rs 69,900 for the iPhone 16e at the same storage tier. However, the earlier model also offered a lower 128GB variant.

Memory costs are the main driver

At the centre of these pricing changes is a sharp rise in memory costs. Components such as DRAM and NAND have become significantly more expensive.

“The market is facing a clear affordability squeeze, driven by sharp memory-led cost inflation and currency pressures that have forced OEMs to raise prices across key models,” said Prachir Singh, senior analyst at Counterpoint Research.

He added that average price increases have crossed Rs 1,500, with the sub-Rs 15,000 segment most affected due to higher price sensitivity.

The impact is also visible in market performance. India’s smartphone shipments declined 3 per cent year-on-year in the first quarter of CY2026, marking the weakest quarter in six years, according to Counterpoint.

Why memory is getting expensive

A key reason behind rising memory prices is the shift towards artificial intelligence.

Memory manufacturers are prioritising high-bandwidth memory (HBM), used in AI infrastructure, as it offers higher margins. This has reduced focus on general-purpose memory used in smartphones and PCs.

According to Nikkei Asia, supply is struggling to keep up with demand and may remain tight until 2027. Major manufacturers — Samsung, SK Hynix and Micron — control about 90 per cent of the global DRAM market and are unable to scale production quickly.

Even with new fabs under construction, meaningful output is expected only from 2027 onwards.

As a result, memory prices in early 2026 are estimated to have risen nearly 90 per cent quarter-on-quarter. Memory now accounts for up to 20 per cent of a low-end smartphone’s cost and could rise to 40 per cent by mid-2026.

Impact is spreading beyond smartphones

The pressure is not limited to smartphones.

Apple has delisted higher memory configurations of some Mac devices, while others are marked as unavailable. This suggests brands are prioritising lower-memory variants due to supply constraints. 

Sony has also suspended orders for parts of its memory card lineup, stating that supply is “not expected to meet demand for the foreseeable future”.

What this means for buyers

In the near term, there is little indication that prices will stabilise.

Counterpoint expects the Indian smartphone market to remain under pressure, with a potential double-digit decline in the second quarter of CY2026 and an overall 10 per cent drop for the year.

With memory supply expected to remain tight until at least 2027, pricing pressure is likely to continue.

This means higher launch prices, post-launch increases, and limited availability of higher variants may become the norm, at least in the short term.