India’s smartphone shipments fell 26% to 35.8 million units between July and September 2026, marking the lowest third-quarter figure since 2016, according to the figures used in this video. One unexpected factor behind rising smartphone costs is the artificial intelligence boom. AI data centres require enormous amounts of memory, increasing competition for semiconductor resources and putting pressure on the supply and cost of memory chips used in smartphones. This video explains how AI-driven demand for memory chips is affecting smartphone prices, why consumers are becoming more cautious about upgrading, and how brands such as Samsung and Vivo are navigating the changing market. We also examine India’s dependence on imported semiconductors and the larger question facing smartphone makers: when prices rise, are discounts enough to convince consumers to replace a phone that still works? Watch to understand the changing economics of smartphone buying in India and what this could mean for consumers and the industry.