Memory-chip price hikes gut India's budget phone and 32-inch TV demand
Sub-₹12,000 smartphone sales fell 54% YoY (Jan-May) as entry share halved to 14%, while the ₹12,000-30,000 band grew 17%. 32-inch TV sales dropped 35% amid ₹3,000-3,500 hikes from 2-3x costlier memory chips. Vijay Sales reports entry units down 7-9%; makers re-enter non-smart TVs to hold sub-₹8,000.
What happened
Vijay Sales · Memory-chip-driven price hikes crushed India's entry-level smartphone and 32-inch TV demand, shrinking budget segments while mid/premium grow.
Key facts
- sub-₹12,000 smartphone sales -54% YoY Jan-May
- ₹12,000-30,000 segment +17%
- premium +6%
- entry share halved to 14%
- 32-inch TV sales -35% Jan-Jun
- 32-inch TV share 38% from 45%
- 43-inch+ TV demand +8-15%
- memory chip prices up 2-3x since Nov-Dec
- 32-inch TV price hike ₹3,000-3,500
- Vijay Sales entry unit sales -7-9% YoY
- non-smart 32-inch TV below ₹8,000
Why this matters
Persistent 2-3x memory-chip cost pressure and vanishing entry-tier margins create consolidation and vertical-integration angles, from securing component supply to acquiring mid-tier-focused brands positioned for the trade-up shift.
What to watch
- DRAM/NAND spot and contract price direction over next 2 quarters
- Q3-Q4 festive-season entry-tier sell-through vs mid-tier
- Refurbished/used-device volume growth in sub-₹12,000 slot
- Non-smart TV re-launch SKU counts and pricing
- Rupee-USD moves compounding import BOM costs
- OEMs cut onboard storage/RAM specs and push cloud/software to hold entry price points
- Retailers like Vijay Sales expand EMI/no-cost financing to pull mid-tier trade-ups
- Refurbished and second-hand phone channels scale to capture displaced budget buyers
- TV makers accelerate non-smart and smaller-panel SKUs while promoting 43-inch bundles
- Brands lean on festive-season discounting funded by mid-tier margin to defend entry volume