# AI ends era of cheap smartphones

> AI drives smartphone price hikes globally, hitting India hardest.
- Title: AI ends era of cheap smartphones · Scroll | Shortify
- Summary: AI drives smartphone price hikes globally, hitting India hardest. AI demand has raised smartphone prices by 15-25% globally, with India seeing 21% increases…
- Keywords: smartphone prices, memory chips, xiaomi, oppo, vivo, huawei, india, digital divide, smartphone affordability, memory chip shortage, ai data centers, Scroll
- Source: Scroll — https://scroll.in/article/1096410/ai-ends-era-of-cheap-smartphones-india-sees-highest-price-rise
- Author: Kinling Lo, Rest of World
- Published: 2026-11-08T02:30:00+00:00
- Read time: 1 min
- Topics: ai, smartphone prices, memory chips, xiaomi, oppo, vivo, huawei, india, digital divide, smartphone affordability, memory chip shortage, ai data centers
## 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.
## Key takeaway

AI demand has raised smartphone prices by 15-25% globally, with India seeing 21% increases as cheap models vanish.