Indian smartphone makers are likely to face a challenging period as global memory or RAM prices surge, squeezing volumes and pushing up average selling prices, a new report has said.
Brokerage CLSA said in a report that Indian smartphone shipments remained under pressure on a YoY and sequential basis in January, with volumes falling about 25 per cent, due to a sharp rise in RAM prices that began in August 2025.
NDTV Profit has earlier reported that RAM prices have tripled since last year amid unprecedented demand from large artificial intelligence (AI) players, which has diverted supply away from the retail market.
The spike in RAM prices has translated into higher device prices and availability concerns, with industry sources pointing to an 8 per cent increase in average selling prices since September.
Nothing CEO Carl Pei has previously warned that smartphone prices are likely to rise this year because of the RAM shortage, which CLSA forecasted could last at least until FY27. The brokerage noted that pricing pressure is most notable in the entry‑level segment.
Major handset makers, such as Motorola, Oppo, and Realme, which source components from Dixon Technologies, have seen annual volume declines ranging from 20 per cent to 68 per cent, the firm said. The brokerage also raised doubts about component manufacturers meeting fiscal‑year guidance and growth targets for FY27.
Smartphones were India’s top export category for the first time, with a total $30.13 billion worth of exports in the January-December period. Apple accounted for 76 per cent of total smartphone exports
India became the world’s second-largest mobile phone producer, with more than 99 per cent of phones sold domestically. Now, Made in India has moved up the manufacturing value chain.
