Updated
Updated · Forbes India · Jul 13
Indian Smartphone Brands Repackage Old Models at Near-50% Higher Prices as Chip Costs Rise
Updated
Updated · Forbes India · Jul 13

Indian Smartphone Brands Repackage Old Models at Near-50% Higher Prices as Chip Costs Rise

3 articles · Updated · Forbes India · Jul 13

Summary

  • Near-50% price hikes are appearing on some “new” smartphone launches in India even when the devices keep largely the same core specifications under different names.
  • Rising chip prices, a weaker rupee, West Asia-related supply disruption and thin margins are pushing brands to reuse existing hardware platforms, cutting R&D, testing and certification costs while getting products to market faster.
  • AIMRA, which represents 1.5 lakh retailers, said the practice has spread across almost all major brands, especially in budget and mid-premium segments, turning what was once occasional inventory clearing into a broader business strategy.
  • Recent examples include Oppo models launched six months apart with a roughly Rs 13,000 price gap, Vivo phones separated by Rs 2,000, and Xiaomi devices launched in April with identical specifications but different branding and prices.
  • Retailers say the tactic often stumbles in stores because shoppers quickly spot the similarities, underscoring how branding is increasingly substituting for meaningful hardware innovation.

Insights

As repackaged phones disappoint buyers, will India’s booming refurbished market force brands to compete for second-hand sales?
With the AI boom and global crises hiking costs, is the era of affordable, innovative smartphones in India officially over?
Are smartphone brands repeating Nokia's historic failure by focusing on hardware tweaks instead of the software innovation that truly matters?