From Scroll · Kinling Lo, Rest of World · · 1m 10s
AI ends era of cheap smartphones
AI drives smartphone price hikes globally, hitting India hardest.
In brief
AI drives smartphone price hikes globally, hitting India hardest. AI demand has raised smartphone prices by 15-25% globally, with India seeing 21% increases as cheap models vanish. Originally reported by Scroll.
AI infrastructure shifts
AI data centers are absorbing smartphone components, ending the era of cheap phones.
Global price rises
Smartphone prices have risen 15% globally this year, with new models 25% more expensive than last year.
Memory chip shortage
A global memory chip shortage, driven by AI data center demand, is pushing up smartphone costs.
Chinese manufacturers pivot
Chinese smartphone makers have drastically reduced entry-level projects to prioritize premium devices.
Regional price impacts
Smartphone prices rose 21% in India, 19% across Asia-Pacific, and 18% in the Middle East and Africa.
Xiaomi price hike
Xiaomi raised the price of a 128GB Redmi 15C from Rs 12,499 ($140) to Rs 16,999 ($190) in six months.
Sub-$100 market collapse
Sub-$100 smartphone shipments fell 60% year over year in Q2 2026, with 173 million shipped globally last year.
Digital divide risk
For the poorest 20%, a smartphone costs 44% of monthly income, and 76% in sub-Saharan Africa.
The key point
AI demand has raised smartphone prices by 15-25% globally, with India seeing 21% increases as cheap models vanish.
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