The iQOO 13 launched at INR 59,999. The iQOO 15? INR 72,999. Same brand. Same "flagship killer" promise. Thirteen thousand rupees more.
And iQOO isn't even the worst offender. Welcome to 2026, where artificial intelligence is quietly picking your pocket every time you buy a phone.
Quick Answer: Smartphones in India are 10-15% more expensive in 2026, driven by AI data centers hoarding global memory chips. Budget phones are hit hardest. Your best defence: buy previous-gen flagships during sale seasons (Holi, Prime Day, BBD) and skip the upgrade cycle.
Why AI Is Making YOUR Phone Expensive
Here's the thing. Every phone needs memory chips -- DRAM for multitasking, NAND for storage. The same chips that AI data centers need. And AI is winning that fight.
According to Digitimes, Samsung and SK Hynix are raising server memory prices by up to 70% in Q1 2026. CNBC reports that Micron is "sold out for 2026" -- its entire capacity booked for AI clients. SK Hynix? Same story. Every wafer allocated to an Nvidia GPU's memory stack is a wafer denied to the LPDDR5X module inside your mid-range phone.
The numbers are brutal. TrendForce forecasts conventional DRAM contract prices surging 55-60% quarter-over-quarter in Q1 2026. That cost doesn't vanish. It lands on your invoice.
Counterpoint Research breaks down the damage by segment: Bill of Materials costs are up roughly 25% for budget phones, 15% for mid-range, and 10% for flagships. Read that again. The cheapest phones got hit the hardest. The INR 12,000 phone your cousin was eyeing? It's now INR 15,000. The math is cruel.
Add the rupee's 4.15% decline against the dollar in FY25, and India -- which imported USD 7.15 billion in smartphone components -- is paying more for every single part that crosses the border.
AIMRA Chairman Kailash Lakhyani put it bluntly: 2026 is "the toughest year on record for OEMs, distributors, and retailers alike." He expects unit volumes to drop even as total market value rises. Translation: fewer phones sold, each one more expensive.
The Damage Report -- Brand by Brand
Phone (2025) | Price | Phone (2026) | Price | Hike |
iQOO 13 | INR 59,999 | iQOO 15 | INR 72,999 | +22% |
Realme GT 7 Pro | INR 59,999 | Realme GT 8 Pro | INR 72,999 | +22% |
OnePlus 13 | INR 69,999 | OnePlus 15 | INR 72,999 | +4% |
Samsung Galaxy A16 | ~INR 15,000 | Galaxy A17 | ~INR 15,500 + no charger | ~+INR 1,500 effective |
Vivo T3x / T3R | ~INR 12,000-14,000 | Vivo T4x / T4R | +INR 1,000-2,000 | +8-15% |
OnePlus absorbed most of the hit. Samsung quietly removed the charger -- the oldest trick in the book. But iQOO and Realme? Twenty-two percent. That's not inflation. That's a different product at a different price pretending to be the same thing.
Will Budget 2026 Help?
Finance Minister Sitharaman presents Union Budget 2026 on February 1. Industry bodies including ICEA and AIMRA have lobbied hard for a GST cut from 18% to 12% on 5G phones under INR 20,000. If it happens, budget 5G phones could drop INR 500-1,000.
But wait. Even if the GST cut comes through, it only covers the cheapest segment. If you're shopping above INR 20,000, the Budget won't save you. The AI Tax doesn't care about your tax bracket.
The Money-Hack: Your 2026 Buying Calendar
Stop buying phones at launch. That's rule one. Here's your actual strategy:
Buy WHAT: Previous-generation flagships. The iQOO 13 dropped to INR 54,708 during Republic Day sales, according to 91mobiles. That's a 2025 flagship at a 2024 price. The OnePlus 13 will follow the same curve.
Buy WHEN:
- March (Holi Sales): First major sale window of 2026. Previous-gen flagships get steep discounts as brands clear inventory.
- July (Amazon Prime Day): Mid-year refresh. Last year's phones hit their lowest prices.
- October (BBD / Great Indian Festival): The big one. Deepest discounts of the year. If you can wait, wait for this.
Buy HOW: Stack bank card offers (typically 10% instant discount), exchange your old phone (INR 5,000-15,000 off), and use no-cost EMI to spread the cost. During Republic Day, iQOO 15 buyers got effectively INR 7,000 off through card offers alone, per Digit.
The one-liner: In 2026, the smartest phone upgrade is the one you delay by six months.
