India's smartphone market sees price hikes and rebranded models amid chip shortages

Smartphone manufacturers in India are increasingly relaunching existing handsets as new models, offering only minor hardware tweaks while charging significantly higher prices. Industry analysts say the practice helps brands cut research and development costs and protect margins as global chip shortages and supply‑chain disruptions raise production expenses.

At the same time, a shortage of DRAM and NAND memory chips is driving up component costs, prompting brands to scale back the deep discounts traditionally offered during the Independence Day sales in August. Experts expect fewer low‑price offers for budget and mid‑range phones, with promotions likely limited to selected models or older devices such as previous‑generation iPhones. Companies may instead emphasize financing options or focus discounts on higher‑margin products, leaving many consumers facing higher out‑of‑pocket costs for new smartphones.