AI-driven memory crunch jolts India’s smartphone market
India's smartphone slowdown highlights how the AI boom is reshaping consumer electronics, from pricing and demand to corporate strategy.
AI demand for memory chips has reduced the supply available for smartphones, driving up handset prices. India's smartphone market, which concentrates on budget devices under $210, has been hit particularly hard, with shipments falling 10% in recent quarters as consumers delay upgrades or turn to secondhand phones. Memory shortages are expected to persist until at least the end of 2027, forcing smartphone makers to shift strategy toward fewer but more profitable sales and prompting some brands to exit certain markets. The disruption matters because India's massive price-sensitive market serves as an indicator for how AI's resource demands are reshaping the broader consumer electronics industry.
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