New Delhi- Indian smartphone manufacturers could face a difficult phase as rising global RAM prices begin to affect production costs and shipment volumes, according to a new report.
Brokerage firm CLSA noted that smartphone shipments in India declined sharply in January on both a year-on-year and sequential basis, with volumes dropping by around 25 per cent. The fall has been largely attributed to a steep rise in RAM prices that started in August 2025.
Earlier, NDTV Profit reported that RAM prices have nearly tripled over the past year. The surge has been driven by strong demand from major artificial intelligence (AI) companies, which has diverted memory supply away from the consumer electronics market.
The spike in memory costs has also pushed up smartphone prices. Industry sources indicate that the average selling price of devices has increased by about 8 per cent since September due to higher component costs and supply constraints.
Carl Pei, CEO of Nothing Technology, had earlier cautioned that smartphone prices could rise this year because of the global RAM shortage. According to CLSA, the supply crunch could continue until at least FY27, with the entry-level smartphone segment expected to face the greatest pricing pressure.
The report also highlighted that major smartphone brands such as Motorola, Oppo, and Realme, which source components from Dixon Technologies, have recorded annual shipment declines ranging between 20 per cent and 68 per cent. CLSA also expressed concerns over whether component manufacturers will be able to meet their FY27 growth targets.
Despite the current challenges, India’s smartphone sector has shown strong export performance. Smartphones became the country’s top export category for the first time, with exports worth $30.13 billion between January and December. Apple alone accounted for nearly 76 per cent of the total smartphone exports.
India has also emerged as the world’s second-largest mobile phone producer, with more than 99 per cent of the phones sold in the domestic market now manufactured locally. The “Made in India” initiative has helped the country move higher up the global electronics manufacturing value chain.
With inputs from IANS