Smartphone Prices Going Up Is Making Life of Indian Telcos Difficult

The smartphone vendors and manufacturers have increased the price of their 4G and 5G devices. They had to do so because of the rising cost of manufacturing new products. There’s a global shortage of chipsets for electronics. Further, the shipment costs have also risen since the time the coronavirus pandemic hit the world. Other components of smartphones, such as displays, have also become expensive.

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Because the manufacturers of components and chips are concentrated in a few parts of the world, they are regulating the price as they want. India doesn’t have a local semiconductor manufacturing base, nor does it produce enough smartphone components to make a difference in the market.
Most of the companies which are manufacturing in India are mostly into assembling the gadgets. Apple, for example, brings components from outside and only assembles them in India.

While this is being looked at by the Indian government through the PLI (Production Linked Incentive) scheme worth $10 billion for the manufacturing of semiconductors and displays in the country, it will still take a long-time for India to stop being dependent on other nations for components and chipsets.

Because of this, in the short term, at least for 2022, smartphones are going to be more expensive than they ideally should be.

Realme Not Planning to Introduce Sub-Rs 10,000 5G Phone this Year

Realme, one of the major Chinese smartphone manufacturers, has no plans of introducing any affordable 5G phone under the Rs 10,000 bracket. This has been confirmed by the company CEO to ET.