4G phones return as memory costs push up 5G prices:Total smartphone sales fell by 10%, but 4G rose by 40%

The sharp rise in memory chip prices is changing the budget smartphone market in India. Memory chips used in phones have become nearly four times more expensive in just a year, pushing up smartphone prices. As 5G phones become costlier, budget-conscious buyers are once again turning to cheaper 4G models. In the April-June quarter, 4G smartphone sales increased 40%, while overall smartphone sales in India fell 10%. 4G smartphone sales rise as overall market falls According to Counterpoint Research, 4G smartphone sales grew 40% quarter-on-quarter in the April-June quarter. Their share of total smartphone sales also increased from 7% in January-March to 12% in April-June. At the same time, India’s overall smartphone shipments fell 10% year-on-year. This was the biggest decline recorded for a June quarter in six years. Counterpoint Research Director Tarun Pathak said memory prices could rise to five times their earlier level in the coming months. Memory chips have become nearly 4 times more expensive Since September 2025, prices of DRAM and NAND memory chips have increased nearly four times. This has made memory a much bigger part of a smartphone’s overall cost. For phones priced below ₹15,000, memory chips now account for more than 45% of component costs, compared with less than 20% a year ago. As a result, average smartphone prices rose by around 15% by the end of the June quarter, with several major brands increasing prices multiple times in 2026. 5G phones now cost around ₹32,200 on average According to IDC, the average price of a 5G smartphone in India has reached around $341 (₹32,200). This is about 15.2% higher than a year earlier. With prices rising, expensive 5G phones are becoming less attractive to buyers looking for affordable devices. 4G phones are nearly two-thirds cheaper The average price of a 4G smartphone is around $109 (₹10,300). Although this price has also increased by 48% over the past year, 4G phones are still nearly two-thirds cheaper than 5G smartphones. This large price difference is encouraging budget buyers to choose 4G phones again. Companies are bringing back affordable 4G models Smartphone makers are responding to the changing demand by bringing back or re-launching 4G models. According to IDC analyst Upasana Joshi, these phones use relatively cheaper components, including LCDs and older LPDDR4x memory. This helps companies keep prices lower at a time when component costs are rising. Will 4G’s comeback continue? The current rise in 4G sales may not last forever. Counterpoint expects the memory shortage to eventually push 5G technology into more affordable smartphones, including models priced below ₹28,000. The research firm expects 5G to maintain more than 50% penetration in India’s smartphone market in 2026. At the same time, memory manufacturers are moving away from older LPDDR4 technology and shifting towards LPDDR5. Since many 4G chipsets rely on older technology, upgrading them could become increasingly expensive. Tarun Pathak said smartphone component prices are unlikely to return to normal before next year. Until then, keeping smartphones affordable will remain a major challenge for manufacturers and buyers.