Is era of affordable smartphones ending? HMD India CEO warns prices may stay high till 2027

The era of ultra-affordable smartphones could be coming under pressure as rising costs of memory and other components push device prices higher, said Ravi Kunwar, VP & CEO, HMD India-APAC, in an exclusive interview with LiveMint during the HMD Vibe 2 Pro 5G launch in India. He added that cost pressures may persist in the industry until the end of 2027.

Kunwar said that HMD is focusing on features that will be useful in practice, battery life, and those specifically helpful in the Indian market, rather than going into an aggressive price war.

The company has officially introduced the Vibe 2 Pro 5G at discounted prices, starting from ₹14,999 for the 6GB RAM configuration and ₹16,999 for the 8GB RAM configuration, and it will be available for sale from 8 October during Flipkart’s Big Billion Days sale.

Rising component costs could keep phones expensive

In the interview, Kunwar said smartphone component prices have risen considerably over the last six months, especially those of memory prices. Growing demand for memory due to artificial intelligence (AI) is part of that pressure, he said.

Manufacturers will continue to seek to optimize their supply chains and costs, but that pressure is not expected to last long, Kunwar said. “The challenge is going to remain till probably the good end of 2027,” he added.

As the high input costs become universal, “consumers will have to get used to the higher prices of smartphones,” he shared.

Also Read | HMD Vibe2 Pro 5G launched: First impressions of the new smartphone

HMD targets value-conscious buyers

The pressure might be greater in the sub- ₹20,000 smartphone price band, which accounts for about 40% of the Indian smartphone market, Kunwar said. He added that consumers facing higher prices could delay upgrades.

With this, HMD is shifting the Vibe 2 Pro 5G’s focus toward features targeted at heavy users. The smartphone gets a 6,000mAh battery, 33W fast charging, dual speakers, dual microphones and a MediaTek Dimensity 6300 processor. It also comes with a 120Hz display.

Kunwar said the upgrades were driven by customer feedback following the Vibe 2 5G, which continues to have a 4.5-star rating on Flipkart, according to HMD.

Sarvam AI brings local language focus

HMD also hopes AI will help it differentiate its phones in India. Vibe 2 Pro 5G has been enhanced with Sarvam AI, which will support 22 Indian languages and take into account regional and cultural contexts.

Kunwar said the goal is to make AI a regular part of consumers’ lives, particularly beyond India’s major metropolitan areas.

Also Read | Vivo V80 India launch date, camera, battery and display details confirmed

HMD plans to expand beyond entry-level phones

Kunwar said that HMD is not planning to stick with the affordable smart devices. The company is slowly climbing the price ladder, having introduced its products at ₹10,000 and later in the ₹14,000- ₹17,000 range. Eventually, he said, the company wants to be a full-line player in each smartphone price segment.

“Our motto is not about being the loudest in the marketplace; it is about being the most trusted,” Kunwar said.