The Union Budget is scheduled to be presented on February 1. People will be keeping a close eye on the budget announcements, particularly regarding smartphone prices. Phone manufacturers are under considerable pressure due to the global chip shortage.
With the Union Budget approaching, a key question troubling both consumers and industry watchers is whether smartphone prices will rise or fall. As every year, expectations are high that the budget will bring some relief and make everyday essentials cheaper. Smartphones, now a basic necessity rather than a luxury, are firmly at the centre of this debate.
Last year, several Indian brands entered the Indian smartphone market, giving Chinese companies tough competition. While Chinese companies largely held prices steady, Samsung raised prices on some models towards the end of the year. This has raised concerns about whether the upcoming budget could trigger further price hikes. Let’s find out what industry experts have to say.
What did industry experts say
According to industry experts, rising global demand for artificial intelligence has led to shortages of key components such as memory chips, putting pressure on global supply chains. This has increased production costs for smartphone makers, leaving them with limited room to absorb expenses without raising prices. At the same time, companies are cautious about making smartphones unaffordable, as higher prices could disturb market dynamics and impact demand.
Madhav Seth, former CEO of Realme and currently CEO of AI+ Smartphones and founder of Nxtquantum Shift Technologies, said, “India’s technology sector is at a turning point. He notes that the shift will go beyond simple assembly, driven by growing demand for AI-integrated devices, which has already contributed to higher handset prices. Seth believes the Union Budget must focus on promoting deep value creation rather than just assembly-led growth.”
Need to boost core manufacturing
Experts stress that India must move up the value chain by manufacturing core smartphone components such as camera modules, batteries, printed circuit boards (PCBs) and other critical parts. Greater emphasis is also needed on research and development, system design, and software-driven innovation.
Currently, while most smartphones are assembled in India, key components are still imported. Industry players argue that targeted tax incentives and policy support in the budget could encourage domestic manufacturing of these components. Such measures could help contain costs, keep smartphone prices stable, and, in some cases, even lead to price reductions.
In short, while immediate and steep price cuts may be unlikely due to global supply pressures, the direction set by the Union Budget could play a crucial role in determining whether smartphones become more expensive, or more affordable, in the long run.
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