Chip shortage increases the tension of smartphone companies, phones can become expensive by 14%

New Delhi. Chip shortage has increased the tension of Chinese companies making budget smartphones. Due to the increasing demand of AI, the supply of memory chips has reduced drastically, due to which the supply chain has been significantly affected. The new report of market research firm IDC has given a big shock to the users buying cheap smartphones. According to the report, the price of smartphones may increase by 14% this year.

IDC has also predicted the biggest decline in global smartphone shipments in the last decade. The chip shortage has left no other option for smartphone companies but to increase the prices of phones. Its effect has been visible in the last few days, when the price increase of phones of other brands including Samsung has been announced.

According to the market research firm, shipments of low-end smartphone vendors may see a decline this year. Due to increasing demand for AI chips and memory chip shortage, the average selling point of smartphones may increase by up to 14%. However, the market research firm has also said that smartphone prices may stabilize in the second half of 2027. Improvements can be seen in the supply chain of memory chips by next year.

According to IDC, the biggest impact of chip shortage can be on smartphones falling in the price segment of $ 100 i.e. Rs 9,000. Due to the rising price of memory chips, the average selling price of budget range phones is expected to increase. Chinese companies Vivo and iQOO have also decided to increase the price of their 6 models. These phones may become expensive in India in the coming days.