AI-driven memory crunch jolts India’s smartphone market
TechCrunch AI Jagmeet Singh
India's smartphone market experienced a 10% shipment decline in Q2 as memory chip manufacturers shifted production toward AI accelerators, driving up costs for consumer devices. The sub-₹15,000 segment saw shipments fall 45% year-over-year, with overall smartphone prices rising between 4% and 68% depending on the model. Consumers are delaying upgrades to approximately four-year cycles, Chinese smartphone brands are retreating from unprofitable markets, and memory shortages are expected to persist until at least the end of 2027.
Why it matters
India's smartphone slowdown highlights how the AI boom is reshaping consumer electronics, from pricing and demand to corporate strategy.
