A worldwide shortage of DRAM and NAND flash, driven by the rapid expansion of AI data centres, has pushed memory prices sharply higher since late 2025. Industry trackers say contract DRAM prices jumped by around 50-60% going into 2026, with further increases expected through the year. Analysts warn that memory now accounts for a bigger share of a smartphone's bill of materials, leaving brands with little room to absorb costs, especially in the budget and mid-range segments.

Motorola has increased prices on several Moto G and Edge 60 Fusion models in India, with hikes ranging from ₹1,000 to ₹2,000. The Moto G35 4GB/128GB model has moved from ₹11,999 to around ₹12,499-₹12,999, while the 8GB/128GB variant now sits at ₹13,999. The Moto G57 8GB/128GB has climbed from ₹14,999 to ₹15,999.

In the mid-range segment, all Motorola Edge 60 Fusion variants have seen steeper increases of about ₹2,000. The 8GB/128GB model is now listed at ₹22,999, up from ₹20,999, while the 8GB/256GB and 12GB/256GB versions have risen to ₹24,999 and ₹26,999 respectively. These updated prices are taking effect across online and offline channels in early April.

Nothing has also raised prices for its newer mid-range Nothing Phone (3a) Lite in India. Unlike Motorola's more modest adjustments, the brand has increased prices by ₹3,000 on fresh stock. The 8GB/128GB variant has moved from ₹21,999 to ₹24,999, while the 8GB/256GB model has gone from ₹23,999 to ₹26,999. For now, some retailers are still clearing old inventory at earlier prices, but these are expected to disappear as new shipments arrive.

The Motorola and Nothing smartphone price hike underlines a wider "AI tax" that Indian buyers are beginning to pay, even if they never use an AI data centre themselves. As memory makers prioritise high-margin AI and server demand, consumer smartphones are being squeezed, making upcoming launches and even entry-level upgrades more expensive through 2026.