Samsung has raised prices on its budget Galaxy A, M and F series smartphones in India, following a similar move by Apple last month. The increase took effect on July 4 and comes as a global component shortage pushes manufacturing costs to their highest levels in years.
According to leaked dealer documentation, Samsung is applying a flat ₹1,000 increase, roughly KES 1,550, across popular models in India, one of its largest and most competitive markets.
Here is the breakdown:
Galaxy A07 4G 4GB+64GB: INR 10,999 → INR 11,999
Galaxy A06 5G all variants: INR 13,999 → INR 14,999
Galaxy A07 5G all variants: INR 16,999 → INR 17,999
Galaxy A17 5G all variants: INR 22,499 → INR 23,499
Galaxy F17 5G all variants: INR 18,999 → INR 19,999
Galaxy M07 4GB+64GB: INR 10,399 → INR 11,399
Galaxy F07 4GB+64GB: INR 10,399 → INR 11,399
The hike is not just about margins. Industry sources say it is a direct result of a severe supply chain crunch in memory chips. Demand for RAM and storage has exploded because of AI infrastructure, and major semiconductor suppliers are shifting capacity away from consumer electronics toward high-margin AI servers and data center hardware.
That pivot has created shortages and driven up prices for the memory modules and SSDs used in smartphones. It has also led to longer procurement lead times, forcing brands to pay more to secure parts.
Samsung has not made a formal announcement, but the timing lines up with broader cost pressures across the industry. Apple already increased prices on iPads and Macs last month. Other Android makers including Nothing, Vivo, Realme, OnePlus, Xiaomi and Motorola have also raised prices on recent launches.
The problem is hitting at a difficult moment for Samsung. The company’s next Galaxy Unpacked event is expected soon, with launches including the Galaxy Z Fold 8, Galaxy Z Fold 8 Ultra, Galaxy Z Flip 8, new Galaxy Watch models, and possibly its first smart glasses.
Leaks suggest those devices will bring real upgrades: larger batteries, faster charging, and brighter displays. But those improvements also cost more to build. Add soaring memory prices on top, and keeping old price tags is no longer realistic.
For India, the impact is immediate. The Galaxy A, M and F series are Samsung’s volume drivers. They sell millions of units every quarter because they offer 5G, big screens and multi-year software updates at prices below the flagship range. A ₹1,000 increase pushes entry models past key price points. The A07 4G now starts at INR 11,999. The A06 5G starts at INR 14,999. The A17 5G crosses INR 23,000.
In budget segments, even small increases change buying decisions. Shoppers often compare devices within a few hundred rupees, and competitors could use this window to gain ground. Chinese brands have been aggressive on pricing, but many are facing the same component costs and have also adjusted prices in recent weeks.
Retailers say Samsung is pushing trade-in bonuses and bundle offers to soften the impact. Carriers are also expected to offer more subsidies and EMI options ahead of the festive season.
The root cause traces back to AI. The boom in AI training and inference has created unprecedented demand for high-bandwidth memory and advanced storage. Chipmakers make far more profit supplying data centers than they do selling to phone makers, so they are prioritizing those orders. That leaves less capacity for smartphones, and what is available costs more.
Analysts expect the shortage to last through the rest of 2026. That means more price adjustments are likely, not just from Samsung but across the industry. Brands will try to offset costs with efficiency and by reserving better specs for higher-priced models.
DRAM and LPDDR prices saw an 81% quarter-over-quarter jump in Q12026, followed by what's projected to be another 58-63% in the second quarter and 20% in the third. These hikes directly drive up the costs of smartphones, PCs, and anything else that relies on RAM.
Per a new report from Julisha.co.ke/subscriptions, the smartphone industry could see its largest shipment decline yet in 2026, with one forecast projecting a 13% decline driven mainly by the RAM shortage.
Rising memory costs hurt budget phones the most because margins are thin and brands have limited room to absorb higher component prices.
