Your next cheap phone may cost a lot more. Here is why budget smartphones are getting expensive – and may keep getting pricier.

The culprit is memory. DRAM and NAND flash chips, essential in every phone, have roughly doubled in price. The reason: AI data centres are buying enormous quantities of both.

High-bandwidth memory for AI now takes about 23% of all DRAM wafer output. When data centres outbid phone makers for chips, phone makers pay more – and pass the cost on.

The numbers show it. Xiaomi's Redmi A7 launched at about $110 in April 2026, nearly 40% more than its predecessor. The Realme C71's India price rose about 70% in a year.

Counterpoint Research forecasts that shipments of phones under $200 could fall about 40% between 2025 and 2030 – roughly 230 million fewer devices a year.

Nothing has cancelled its budget CMF Phone 3 Pro line, a sign that even value-focused brands cannot make the maths work.

The biggest risk, analysts warn, is digital inclusion. Billions of first-time users rely on sub-$200 phones to get online.

What can buyers do: expect fewer choices under Rs 10,000, and compare specifications carefully as brands cut corners to hold prices.