Smartphone prices may rise ahead of festive season as component rates hiked

New Delhi: Smartphone prices in India may rise with Chinese suppliers of key smartphone components such as display panels and battery packs hiking prices by approximately 15%. The higher cost of the key components – which make up some 25% of a smartphone’s value – may lead to higher prices or lower discounts, developments which may drag critical festival season sales.

For leading smartphone brands including China’s Xiaomi, Vivo, Oppo, Realme and OnePlus who are pre-building inventory for the festive season, the component price hike could mean a cumulative cost escalation of close to Rs 15,000 crore, with their sales for second half of 2020 estimated at 50 million units, according to industry estimates.