Buying a new smartphone in India is becoming more expensive, and experts say the reason goes far beyond brand pricing. Rising component costs, AI-powered chips and global supply pressure are pushing smartphone prices higher across budget, mid-range and premium categories.

One of the biggest reasons is the growing demand for AI technology worldwide. Tech companies building AI systems and data centres are using massive amounts of memory chips that are also needed for smartphones. As chipmakers focus more on AI hardware, smartphone component supplies are becoming costlier.

Experts say modern smartphones are also getting expensive because brands now include advanced AI features, faster processors, better cameras, bigger batteries and upgraded displays. Manufacturing next-generation 5G and AI-enabled chips costs significantly more than older technology.

A weakening rupee, rising import costs and increasing production expenses are adding more pressure on smartphone companies in India. Several brands have already increased prices across different models in recent months.

Experts warn that affordable smartphones could become harder to find if global chip demand continues rising. Some companies may also reduce storage or RAM in budget phones to keep prices under control.

Consumers may now have to spend more for features that were once available at lower prices.