Rising costs for smartphone components and logistics are pushing up prices for consumers in India, and leading to expectations of increased demand for second-hand devices. While nearly all brands are increasing prices on their better handsets, the impact is likely to be particularly noticeable for market leaders Apple and Samsung.
Price Hikes Across the Board
Both Apple and Samsung have recently increased prices on their devices in India. The iPhone 17 (256GB), which originally launched at Rs 82,900, now carries a price tag of Rs 99,900. The iPhone Air (256GB) has seen an even more substantial increase, jumping from Rs 1,19,900 at launch to Rs 1,49,900. Samsung’s S series and A series devices have also become more expensive.
These increases come despite the availability of EMI (Equated Monthly Installment) options, reflecting the sensitivity of the Indian market to price. The brands have reportedly been compelled to raise prices due to increasing costs for DRAM and other components, as well as higher logistics expenses.
Second-Hand Market Poised for Growth
A pre-existing market for used smartphones is now expected to expand as consumers seek more affordable options. Apple and Samsung devices are well-positioned to benefit from this trend. Their devices tend to have a longer lifespan and retain their value well, due in part to the companies’ long-term software support policies for flagship models.
iPhones, in particular, are noted for their strong resale value. The long-term reliability of the hardware, combined with continued software updates and readily available after-sales support, makes these phones attractive to buyers even after they’ve been previously owned. While battery degradation is a common issue, replacing a battery is a relatively inexpensive way to extend the life of an Apple or Samsung device.
No Price Relief in Sight
Experts do not anticipate a reversal in these price trends in the near future. Increased demand for chips from the artificial intelligence (AI) sector and data centers is driving up prices at the manufacturing level, creating a classic supply and demand imbalance.
