Samsung has launched refurbished Galaxy smartphones in India under its 'Certified Re-Newed' programme, offering consumers a cost-effective alternative amid rising RAM and storage chip prices. The initiative provides one-year warranty, genuine components, and software updates, ensuring reliable performance.
Supply Constraints Driving Prices
The cost of RAM and storage chips has surged due to supply constraints, leading to higher smartphone prices. This has prompted companies to explore refurbished options to maintain affordability. Smartphone shipments in India declined by 2% year-on-year, with a further drop of 10-12% expected in 2026, attributed to high DRAM and NAND flash prices.
Semiconductor Prioritization
Major semiconductor firms are prioritizing production for generative AI services, exacerbating supply shortages for smartphones and other devices. This trend is expected to continue, with no immediate relief in sight.
Industry Trend Toward Refurbished Devices
More companies are likely to launch refurbished phone programs as RAM and storage prices remain high. The refurbished market offers a viable solution for both manufacturers and consumers facing price pressures.
Key statistics include a 2% smartphone market decline year-on-year, an expected 10-12% shipment decline in 2026, and a 14-15% price increase for new phones in 2026.
