Affordable 4G Phones See Demand Surge as Memory Price Hike Pushes 5G Handsets Out of Budget Segment

As memory prices have surged, India's budget smartphone market is experiencing a shift. The demand for 4G phones is rising as they present a more affordable alternative to 5G phones, which have become costlier due to increased memory costs. 

4G Phones Make a Comeback 

As per Counterpoint data, In Q2 2026, 4G smartphone shipments in India increased by 40% quarter-on-quarter, capturing 12% of the market, up from 7% in Q4 2025, as reported to The Moneycontrol news.  

This resurgence is attributed to the affordability of 4G devices amidst soaring memory prices, which have nearly quadrupled since September 2025. 

Smartphone makers have expanded their 4G portfolios in the budget segment, offering consumers a cost-effective option as the average selling price of 5G smartphones reached $341, compared to $109 for 4G phones. 

Impact of Rising Memory Costs 

The sharp increase in memory prices has significantly impacted smartphone costs. The share of memory in the bill of materials for phones priced below ₹15,000 has risen from below 20% to over 45%. This has led to a 15% increase in average smartphone prices by the end of Q2 2026. 

Read More: GRSE Share Price in Focus; Partners with DNV and Damen to Enhance Maritime Capabilities! 

Shift in Consumer Preferences 

With the rise in memory costs, many smartphone manufacturers have reintroduced or extended 4G models in the budget segment. These models often use older components like LCDs and LPDDR4x memory to keep prices low. As a result, 4G's market share increased from 5.8% in Q1 2026 to 11.1% in Q2 2026. 

Conclusion 

In Q2 2026, 4G smartphone shipments in India rose by 40% quarter-on-quarter, capturing 12% of the market. Memory prices have increased nearly 4 times since September 2025, raising smartphone costs and driving demand for more affordable 4G models. 

Disclaimer: This blog has been written exclusively for educational purposes. The securities or companies mentioned are only examples and not recommendations. This does not constitute a personal recommendation or investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.