Source: TechCrunch
As phone makers bundle AI capabilities into mid-range and budget devices, they're pushing component costs higher just as India's price-sensitive market expects margins to compress. Companies like Samsung and OnePlus are discovering that AI chips and on-device processing drain memory and storage faster than traditional phones, forcing them to either absorb costs or pass them to buyers accustomed to $150-300 devices. The conflict exposes a mismatch: AI's hardware demands assume Western upgrade cycles and profit margins, not the longer replacement windows and lower price floors that define emerging markets.