At a time when smartphone prices have steadily risen due to a global increase in RAM costs and a growing supply–demand imbalance, consumers are feeling the pinch. While manufacturers, including smartphone brands, have absorbed part of the higher input costs, a significant portion has been passed on to buyers, pushing up handset prices in an already cash-strapped economy.
“We are very well positioned in the industry, especially considering that we have an extended supply chain from our parent organisation, Lenovo,” Shivam Ranjan, Marketing Head, APAC, Motorola, told indianexpress.com in an interview last week in Phuket, Thailand, on the sidelines of the pre-launch of Motorola Signature.
“That has led to a broader supply chain and procurement process, and we have been active slightly earlier than some of our competitors in creating reserves or buying early in the product life cycle to bridge potential supply gaps. So, we don’t see any supply challenges, at least compared to some brands that may face supply constraints, said Ranjan.
‘Price rise becoming evident in mid- to high-end segments’
RAM, or random access memory, is a critical component in devices such as phones and computers. It is used for short-term data storage, and without it, a device would be unable to run. Since October 2025, the cost of RAM has doubled due to the diversion of essential components used across computing devices to meet the growing demand for AI data centres.
Companies such as Nvidia, Google, and AMD require massive amounts of RAM for their artificial intelligence chips, putting them at the front of the line for these components. In fact, the three major memory vendors — Micron, SK Hynix and Samsung Electronics — account for nearly the entire RAM market, and their business is booming amid a surge in demand.
There is, however, a double whammy for phone makers. Not only have they weathered tariffs by absorbing costs, but higher RAM prices will now raise phone costs, which are likely to be passed on to consumers.
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Shivam Ranjan, Marketing Head, APAC at Motorola. (Image: The Indian Express/ Anuj Bhatia)
“Smartphone supply is largely stable in Q1 2026, but shortages are expected to begin from Q2 2026 onward,” said Abhilash Kumar, Senior Industry Analyst at TechInsights.
Kumar added that memory suppliers and smartphone brands are prioritising flagship models to maximise value, putting top-tier smartphone brands in a better position. However, low-tier and entry-level brands may face the brunt of the shortage, forcing them to cut specifications and eventually raise phone prices.
“In the mid- to high-end segments, price increases are becoming evident, as vendors are unlikely to reduce memory or absorb margin losses, instead opting to trim less visible specifications,” he said.
“The smartphone market is facing a tight DRAM supply, with LPDDR4X and LPDDR5/5X RAM prices already up more than 30 per cent in Q4 2025 and set to rise another 40–50 per cent sequentially this quarter due to capacity constraints at major memory fabs,” Jeffrey Mathews, Senior Industry Analyst, TechInsights, said.
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‘Higher phone prices are inevitable’
Phone makers may have to make tough decisions on when to launch their devices and at what prices. Some models could cost more than they were previously available for, while newer models may see price increases.
“It’s a fact that prices are going up, especially for OEMs, and we are already seeing price increases across the industry. If you look at the recent flagship launches by competing brands, you will see that prices are rising,” Ranjan said.
“Since September, prices have gone up, even for existing models across the market. In fact, Motorola is one of the brands that has still not raised prices, which shows the resilience of our portfolio and the strength of our supply position. But price increases are inevitable,” he added.
There is, however, a double whammy for phone makers. Not only have they weathered tariffs by absorbing costs, but higher RAM prices will now raise phone costs, which are likely to be passed on to consumers.(Image: The Indian Express/ Anuj Bhatia)
“For our existing stock, we believe we can sustain current pricing through the Republic Day sale and the festive period in January. We should be able to maintain old pricing for our previous models during this time. Eventually, however, we will follow broader industry trends.”
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“We will, of course, try to remain more competitive than the rest of the industry, but pricing movements in this category will be adopted across the market. Our aim is to delay any increase as long as possible, and we believe we are already ahead of the curve by maintaining prices even as the industry moved a couple of months ago,” he said.
Tilt towards selling higher-end, expensive handsets
Ranjan predicts that the Indian smartphone market will grow at a single-digit rate in value terms in 2026. However, he also expects average selling prices (ASPs) across models to rise in India.
In response, phone makers like Motorola, which has a diversified portfolio largely concentrated in the mid-range to premium mid-range segments, are focusing on selling higher-end, more expensive handsets that offer better margins.
Its latest Motorola Signature is an attempt to tap into the high-end segment, where Apple and Samsung are market leaders and where ASPs are higher and more profitable. For Ranjan, the new Signature series aims to capture the premium candy bar market, complementing Edge and Razr while avoiding overlap among franchises.
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Motorola is the fastest growing smartphone brand in India with a market share of 8.3 per cent, accoridng to IDC.
Shivam Ranjan, Marketing Head, APAC at Motorola. (Image: The Indian Express/ Anuj Bhatia)
There is, however, a double whammy for phone makers. Not only have they weathered tariffs by absorbing costs, but higher RAM prices will now raise phone costs, which are likely to be passed on to consumers.(Image: The 
