Higher smartphone prices are pushing Indian buyers toward EMIs, repairs and refurbished devices
Rising component costs and AI-led memory shortages are lifting handset prices, but demand remains resilient ahead of the 2026 festive season. A Counterpoint Research survey of 2,000-plus consumers finds buyers are stretching budgets, seeking financing, switching brands and considering refurbished phones or repairs.
What happened
India smartphone market · Rising component costs and AI-led RAM/ROM shortages are lifting Indian smartphone prices. Consumers are responding through higher
Key facts
- Counterpoint Research surveyed more than 2,000 consumers
- 46% of young consumers are willing to spend more for their preferred smartphone
- 29% of users will not exceed their set smartphone budget
- 29% are considering refurbished smartphones
- 25% would repair and use their old phones longer
Why this matters
Look for partnerships or acquisitions in consumer finance, certified refurbishment, repair networks and trade-in platforms as these services become critical demand-capture channels.
What to watch
- Monthly smartphone average selling price and unit growth by ₹10,000-₹15,000, ₹15,000-₹30,000 and premium price bands.
- EMI penetration, average loan tenure, approval rates, consumer delinquencies and the level of brand-funded financing subsidies.
- Festive-season pre-bookings, exchange volumes and retailer inventory days.
- Refurbished-device search traffic, certified-refurbished sell-through and used-phone buyback values.
- Authorized-service-center repair volumes, especially display and battery replacements for phones more than two years old.
- Memory and component-price trends, rupee movement and any handset price-list revisions by major brands.
- Brand-switching rates and share shifts among consumers who cannot afford their original preferred model.
- Expand no-cost EMI, low-down-payment and longer-tenure plans while tracking delinquency and financing subsidy costs by price band.
- Increase trade-in valuations and guaranteed buyback programs to reduce the perceived affordability gap for premium models.
- Build certified-refurbished assortments, with battery-health certification, warranties and transparent grading, rather than ceding demand to informal channels.
- Bundle screen protection, accidental-damage cover and affordable repair plans; repairs will increasingly function as a retention product, not just an after-sales service.
- Prioritize festive inventory toward proven premium and entry models, while keeping mid-tier inventory lean until replacement-demand elasticity is clearer.
- Use targeted offers for consumers with devices older than three years, especially upgrade-plus-exchange and repair-versus-upgrade decision tools.