Why Smartphone Prices Are Skyrocketing Despite Festive Discounts?

India’s smartphone market is facing a severe crisis, with shipments plunging 20% in the July-September quarter. Globally, the picture is even worse, with shipments crashing 22%. Why are phone sales dropping despite festive discounts? The culprit is the massive AI boom. As AI data centers hoard memory chips, supply shortages have driven handset production costs through the roof. Manufacturers are passing these heavy costs directly to consumers, effectively killing the popular ₹10,000 to ₹30,000 budget segment. With average smartphone prices now crossing ₹50,000, and flagship devices like iPhones getting up to ₹30,000 more expensive, upgrading your phone is harder than ever. Watch to understand why the smartphone industry is facing this unprecedented slump and what it means for buyers.