Rising Prices Could Lower Consumption for Tech Brands

The Indian currency is declining fast in value against the dollar. Brands need to set their new prices with that guidance to protect their margins. But again, it is not just Apple which is raising the prices.

ByTanay Singh Thakur TelecomTalk

Published on Jun 26, 2026 12:14pm IST

Highlights

Globally, due to rising memory costs owing to supply chain issues and huge demand of chips from the AI data centers, tech products are getting expensive.
It is basic demand and supply.
Simply put, there's a shortage of chips, but the consumers still want new phones and laptops.

Highlights

Globally, due to rising memory costs owing to supply chain issues and huge demand of chips from the AI data centers, tech products are getting expensive.
It is basic demand and supply.
Simply put, there's a shortage of chips, but the consumers still want new phones and laptops.

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Rising Prices Could Lower Consumption for Tech Brands

Globally, due to rising memory costs owing to supply chain issues and huge demand of chips from the AI (artificial intelligence) data centers, tech products are getting expensive. It is basic demand and supply. Simply put, there’s a shortage of chips, but the consumers still want new phones and laptops. Tech in general is going to get expensive. Who will this hurt the most? The consumers? To some extent yes, but it will hurt the capital markets more, who are backing the tech brands to show a growth in topline. For brands already struggling for expanding market share in countries such as India, this wouldn’t be an ideal time. However, products that are genuinely a need, will still be sold.

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Much recently, price hikes have affected even the major brands such as Apple. Now, in a bid to maintain the profit margins, and show growth to investors, Apple also had to hike the price of its products across segements, but not iPhones. Apple understands the value iPhones create for the company, and any slowdown in sales will affect the entire valuation and revenues. While the price hikes have come globally, in India, it looks slightly harsher.

For example, a MacBook Pro with M5 Pro chip will now actually cost Rs 1 lakh more.

So Why are the Price Hikes Even More in India Compared to US?

It is also simple math. The Indian currency is declining fast in value against the dollar. Brands need to set their new prices with that guidance to protect their margins. But again, it is not just Apple which is raising the prices. Even the utility products that you get including refrigerators, washing machines and more will start getting expensive. But the major hikes will be for products that are powered by the chips. This will continue to happen, at least for the forseeable future.