New Delhi: Counterpoint Research and Flipkart have released the Smartphone Insights Report 2026, revealing a shift in India’s market towards more intentional, experience-driven purchase decisions, driven by rising EMI adoption and longer replacement cycles. Neary 89 per cent of users now consider AI features a key purchase driver. AI is used for content creation and entertainment by Gen Z, productivity by millennials, and everyday assistance by women. AI is rapidly becoming a baseline expectation in the mid-range segment, moving from individual features towards integrated AI agents and multimodal interactions. The report indicates that Indian consumers are prioritising seamless everyday usage, longevity and affordability over frequent specifications-led upgrades.
Performance, camera quality and reliability remain the core preferences. Consumers now treat these as essential baseline requirements rather than differentiators. 45 per cent are willing to pay more for better performance, and 57 per cent for superior camera quality. Price and value for money dominate 60 per cent of purchase decisions, followed by trust in the brand and online reviews. Replacement cycles now average four years, and EMI adoption rising to 33 per cent of purchases reflect deliberate, value-driven behaviour, as well as rising device costs. Design is getting increasingly important, with 64 per cent of consumers preferring colourful devices. Users are prepared to pay a five per cent premium for the preferred colours and materials, especially among women, Gen Z and consumers from Tier 2 cities.
Market is undergoing a transformation
Research Director of Counterpoint Research, Tarun Pathak said, “India’s smartphone market is undergoing a transition in how consumers evaluate devices, with growing emphasis on camera capabilities, performance and AI-driven features. What stands out is the increasing intent among users to make more considered upgrade decisions, driven not just by new launches but by tangible improvements in everyday usage. This is indicative of a more mature and informed consumer base, which is pushing brands to focus on delivering consistent, high-quality experiences across price segments.”