The smartphone industry is currently facing significant challenges due to a shortage of critical components, particularly memory chips and storage. This shortage is largely driven by suppliers reallocating their capacities to meet the booming demand for AI hardware, which has led some smartphone brands to increase prices, especially for entry-level models. Additionally, the depreciation of the rupee has made importing these components more expensive, further complicating the situation for manufacturers. Companies like Oppo have already raised prices by up to Rs 2,000 on various models, while others like Xiaomi are holding off for now but may have to adjust prices in the future. Retailers are reporting a decline in sales, which could worsen if prices continue to rise, indicating a potential shift in consumer behavior and market dynamics as the industry grapples with these supply chain issues.