Memory-chip cost surge guts budget phone and 32-inch TV sales as buyers trade up

Sub-Rs12,000 smartphone sales fell 54% YoY (Jan-May) while the Rs12,000-30,000 segment rose 17% and premium grew 6%. Entry-level share halved to 14%. 32-inch TV sales dropped 35% on Rs3,000-3,500 price hikes; 43-inch+ demand up 8-15%. Brands prune budget models; some re-enter non-smart TVs.

— Source publishedTue, 14 Jul, 2026, 08:37 IST·First seen Tue, 14 Jul, 2026, 10:21 IST·Source ET Retail

What happened

Vijay Sales · Price hikes from surging memory-chip costs cut entry-level smartphone and 32-inch TV sales in India, while mid-range and premium grow. Brands

Key facts

  • sub-Rs12,000 smartphones down 54% YoY Jan-May
  • Rs12,000-30,000 segment up 17%
  • premium >Rs30,000 up 6%
  • entry-level share halved to 14%
  • 32-inch TV sales down 35% Jan-June
  • 32-inch TV share fell to 38% from 45%
  • 43-inch+ TV demand up 8-15%
  • entry models down 17% to 71
  • memory chip prices up 2-3x since Nov-Dec
  • 32-inch TV price up Rs3,000-3,500
  • Vijay Sales entry-level units down 7-9% YoY

Why this matters

Rising memory-chip costs are structurally hollowing out the entry-level tier, creating acquisition or partnership openings around mid-premium brands, component-supply hedging, and value-segment plays like non-smart TVs that can absorb displaced budget buyers.

What to watch

  • DRAM/NAND spot and contract price trend over next 2 quarters
  • Entry-level smartphone share stabilizing vs. sliding below 14%
  • Growth of refurbished/second-hand phone transaction volumes
  • Financing penetration (EMI as % of mid-tier sales)
  • Non-smart TV reorder rates and 32-inch price elasticity
  • Rural/tier-3 demand indicators and first-time buyer counts
  • Brands consolidate SKU counts, killing loss-making sub-Rs12,000 models and reallocating marketing to Rs15,000-25,000 hero phones
  • Aggressive no-cost EMI and exchange-bonus schemes to migrate budget buyers upward
  • Re-entry of non-smart / basic LED TVs and feature phones to defend the ultra-value floor
  • Retailers rebalance floor space and inventory toward 43-inch+ TVs and mid-premium phones
  • Refurbished and open-box channels scale up to capture displaced entry buyers