New Delhi, Oct. 8 -- Rising memory chip prices could put pressure on smartphone affordability and slow the next phase of digital penetration in India, as the industry grapples with a plateau in smartphone adoption and higher component costs. Pankaj Mohindroo, Chairman of the Indian Cellular and Electronics Association (ICEA), said the industry is studying the impact of expensive memory chips and is preparing policy recommendations to address the challenge.

"The smartphone demand has been constant for the last four years at 150 million. This year we expect that it will drop by about 12%," Mohindroo said, while adding that the decline would be in volume rather than value as average selling prices have risen substantially.

He said the mark...