Quick summary – click for full details
Concise summary of key highlights
Quick summary – click for full details
Concise summary of key highlights
In one line
Samsung to counter rising component costs in India with affordable financing and festive discounts despite a severe DRAM and flash storage chip shortage.
Key points
• DRAM and flash storage crunch
Since mid-2025, a severe shortage of DRAM and flash storage chips has caused component prices to surge by 300%, disrupting the smartphone market.
• Market impact in India
Rising material costs led to a 15% degrowth in the Indian smartphone market in the first half of 2025, with further challenges expected in the second half.
• Samsung’s strategy
Samsung plans to absorb rising costs by offering affordable solutions, including interest-free EMIs and festive discounts, to shield Indian consumers.
• AI features expansion
Samsung is enhancing Galaxy AI with features like Voice Focus for noise suppression and local language support, developed in its Indian R&D centres.
• Future outlook
Memory chip costs are expected to remain high for 12-18 months due to constrained production and geopolitical factors, affecting device prices.
Key statistics
300%
Component price surge due to chip shortage
15%
Market degrowth in India
20-30%
Smartphone price increase over six months
12-18 months
Expected duration of elevated memory chip costs
Processed with AI. Reviewed by DH Digital Team.
Samsung Galaxy Z Fold8 Ultra (left) and the Galaxy Z Fold8.
Credit: DH Photo/KVN Rohit
Published 04 August 2026, 11:01 IST
