India's smartphone market is experiencing a significant jolt due to AI-driven memory chip demand, causing a ripple effect across consumer electronics. This phenomenon has led to a 10% year-over-year decline in smartphone shipments in the April-June quarter, marking the steepest decline in six years. The impact is particularly pronounced in India, where about 60% of the smartphone market is concentrated in the sub-₹20,000 segment, which is highly affected by higher memory costs. This shift has broader implications for the market, with brands like OnePlus strategically retreating from certain markets and consumers feeling the squeeze. The article delves into the intricate dynamics of this disruption, exploring how it affects brands, consumers, and the broader smartphone ecosystem in India and beyond.
