Artificial intelligence could push the top costs of 15% in India, Etbrandequity

Recently, Ai and Generative (Genai) skills have also entered mid -range smartphones, stimulated by the phones and initiatives of chipset producers. However, analysts have warned that if the costs of the costs are transmitted to buyers of mid -range models, this year it could further dampen the shipments in India.

“With the costs of increased chipset and also the corresponding costs of the memory chipset to offer the complete features of artificial intelligence in a smartphone, the overall cost for the production of a top smartphone will increase,” said Neil Shah, vice -president of Counterpoint Research.

“After one point, the brands will not have enough space to adapt the costs of the Bom (billing) to maintain prices the same year after year and will have to increase the prices of the flagships by at least 10-15% while moving to chipsets with advanced knots,” Shah said.

Thomas Ch, Senior Director (marketing product) at the Taiwan Mediatek chipmaker, said that the cost to offer premium performance in a smartphone is on the rise, but added that consumers are willing to pay more to buy a premium smartphone.

For their part, chipset producers and other suppliers are trying to check the costs, he said. “MediaTek is part of a very complex supply chain, which also includes memory, display and camera and others. Each sector is doing its best to control costs,” he said.

The International Data Corporation (IDC) has observed that the evaluating fluctuations are also weighing on the prices of the chipsets.

Upasana Joshi, research manager, IDC, said that the transmission of higher costs for consumers could criminal sales of smartphones in India, a market that has a subdued demand. He added that since artificial intelligence skills are already available in devices at the price of over $ 30,000, an increase in prices could have an effect at the sector level.

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