The End of the "Accessible" Premium Smartphone? Realme's Francis Wong on Rising Component Costs and the Future of Value

Realme has kicked off 2026 with the launch of its all-new 16 Pro series, including the Realme 16 Pro+ and 16 Pro. While the new 16 Pro series brings the usual bells and whistles we expect from a mid-premium smartphone, the larger question here is: is it the last of the "accessible" premium smartphones? A smartphone range between Rs. 35,000 and Rs. 45,000 has always been an important segment for several brands, including OnePlus. And who better to walk us through developments in the smartphone category and where Realme is heading than Francis Wong, Realme India's Chief Marketing Officer.

Starting, obviously, with the elephant in the room, we wanted to understand where the smartphone category as a whole is heading in terms of prices. Wong started by breaking down things for us, "Yes, every smartphone launching in 2026 will be more expensive than phones with similar specs in 2025. This trend is unstoppable and will continue till H2 2027. To be very honest, people will feel the Realme 16 Pro series is overpriced at the beginning and then realise it's such a great value for money product soon after other brands launch their mid-rangers." 

On being asked about the possible reasons for the increased prices, Wong responded, "Rising component costs, especially in memory, imaging, and AI hardware, are a long-term reality. Samsung has reportedly raised prices of key memory chips by as much as 60% amid global shortages. In parallel, Apple is facing a 230% increase in the cost of 12 GB RAM used in flagship models. We built the 16 Pro Series with these realities in mind and to deliver a true premium experience while it still makes sense for consumers. Camera, design, battery life, and everyday performance, every upgrade in the 16 Pro Series is there to elevate real usage, not just the spec sheet. Pricing has shifted, but every rupee is backed by features that deliver real, everyday value."

Francis Wong, Chief Marketing Officer at Realme India

Wong has been very vocal on social media about rising NAND and DRAM costs. We wanted to understand how Realme is managing to offer high-storage variants in the 16 Pro Series without passing the full 'AI-boom' tax onto the consumer. 

Wong explained, "There's no denying the cost impact; prices have risen across the industry, largely due to AI-driven demand tightening supply. What matters is how you respond. In December, we achieved consecutive success with both P4x and Narzo 80x, demonstrating that we absorbed the price hike while offering consumers competitive, value-for-money products. Same for 16 Pro Series: costs have gone up, but we've tried to incorporate the best camera capabilities to improve real-world usage. So basically, when I have no choice in memory cost, I try to control the costs on other parts, for example, we have a good stock of advanced camera and battery components."

But next, we wanted to understand whether, due to the trend of rising prices, the era of 'extreme performance at low-end prices' might be ending due to component costs, and will this mean Realme is shifting its identity from a 'disruptor' to a 'premium-experience' brand? Wong said, "Lower-end devices will face more challenges because component cost hikes have a higher impact on their BOM. It will be increasingly difficult for brands to provide offerings with high performance and low prices in 2026 compared to 2025."

However, on Realme's offerings, he added, "The spirit of disruption in Realme has not changed, but it has matured. In the 16 pro series, you can still see the 200MP and periscope telephoto combo, which was first brought to the mid-range segment."

He further added, "Realme will always be the 'disruptor' in the industry. It's just that we need to have an answer about “Premium-experience” to the Indian consumer. I am dividing two product lines, realme number series for “premium-experience” and realme P series for online power users."

Wong also talked extensively about the latest 16 Pro series, which we will cover in our next interview-based story. So, stay tuned.