comscore Why it makes no sense to buy a Rs 15,000 phone in India right now
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Why it makes no sense to buy a Rs 15,000 phone in India right now

The global chip shortage has impacted the smartphone industry majorly. Besides delaying some launches and shipments (like JioPhone Next), the chip shortage crisis is also burning consumers’ pockets.

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With the delay in phone launches and prices hiking, the Indian smartphone space is going through a tussle right now. One of the key reasons behind the significant change is the global chip shortage crisis that has majorly impacted the smartphone industry and several others in the last few months or so. Also Read - Ola electric scooter delivery delayed due to chip shortage: Check new delivery date

The chip shortage and supply chain constraints have not only impacted the smartphone space but also auto, laptops, and several other industries. The biggest example is the delay in Ola scooters shipments. In the latest update, the company stated chip shortage as the reason behind the delay in deliveries. Also Read - Smartphone prices to increase further as global chip shortage crisis continues

The global chip shortage has impacted the smartphone industry majorly. Besides delaying some launches and shipments (like JioPhone Next), the chip shortage crisis is also burning consumers’ pockets. Also Read - India's feature phone market crumbles as mass switches to smartphone

In the last few months, several smartphone manufacturers such as Redmi, Samsung, Realme, Oppo, among others have increased the prices of its phone, mostly budget phones.

But why only budget phones? Well, that’s because the profit margin on these affordable phones is minimal and with the supply chain constraints, the prices of components have increased significantly. This directly impacts the retail pricing of smartphones.

Redmi Note 10T 5G

Experts suggest that prices of phones, especially the budget devices, will go up significantly all through next year as well. The global chip shortage and its impact should last until late 2022.

This makes all the more sense for consumers to spend Rs 5000 – Rs 10000 extra and buy a smartphone with better and powerful specifications instead of unnecessarily spending a lot more on a budget smartphone. A better-specced smartphone will not only help consumers work seamlessly and multi-task but also allow playing games like BGMI, PUBG: New State without any stutters.

The global chip shortage has hit the smartphone industry so hard that it is now impossible to find a decent smartphone around the price of Rs 10,000. In fact, Redmi, a brand that is mostly known for its budget phones, is struggling to provide any good offering at the under Rs 10,000 price bracket.

In fact, it is likely due to chip shortage that Jio launched the JioPhone Next at an unexpectedly high price point. The Jio-Google smartphone comes at a retail price of Rs 6499, which is almost double what consumers expect.

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  • Published Date: November 24, 2021 5:29 PM IST



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