Chip crunch hits laptops, budget smartphones

Atypical memory chip used in smartphones and laptops accounts for 10-15% of the cost of production.

- Shouvik Das [e-mail]

Prices of budget smartphones and laptops in India have risen by almost 10% and a further increase may be on the anvil next year.

The reason: memory chips, a crucial component of these devices, have become 50% more expensive since January, and an additional 50% price hike could be on the cards—making the most-sold phones and laptops more than 10% more expensive over the next year.