Despite price increases driven by rising manufacturing and component costs, 46 per cent of Indian consumers planning to purchase a smartphone within the next six months are willing to stretch their budgets to buy their preferred device, according to a Counterpoint Research consumer survey report released on Friday.
The survey, conducted among 2,095 prospective smartphone buyers across diverse demographics, genders, city tiers, age groups and occupations, explores how higher prices impact purchase intentions, spending patterns, upgrade behaviour and brand preferences.
Consumer segments and spending behaviour
The report segments consumers into three distinct groups based on their response to price increases:
| Consumer Segment | Percentage | Key Demographics | Behaviour |
|---|---|---|---|
| Willing to stretch budget | 46% | Primarily aged 25-30 (52%); slightly more pronounced among Tier-I consumers | Stretch budget, opt for affordability-driven payment options, or switch ecosystems to get preferred smartphone |
| Stick to budget or choose refurbished | 29% | Most prominent among respondents aged above 50 (34%) | Stay within planned budget or purchase a refurbished device |
| Delay purchase | 25% | More prevalent among homemakers and students | Continue using current device longer or get it repaired to extend its life |
Arushi Chawla, Senior Analyst at Counterpoint Research, said: “Consumers’ dependence on smartphones has grown significantly, leading to a clearer understanding of the features and experiences they value. Against this backdrop, price increases are driving shifts in consumer purchase plans, creating opportunities for brands with strong pull, especially in the mid-to-premium segment.”
Implications for OEMs and manufacturing supply chains
The survey underscores that rising manufacturing and component costs continue to drive up smartphone prices in India. For OEMs and their supply chain partners, this signals a market where consumer willingness to pay more is coupled with expectations for stronger value. Chawla noted that brands offering a balanced portfolio across adjacent price bands are likely to benefit. “At the same time, growing awareness of rising smartphone prices is shaping expectations for the 2026 festive season. Consumers are increasingly looking for stronger value through discounts, exchange offers, financing options and other affordability-driven promotions before making their purchase,” she added.
Retailer influence and after-sales support
The uncertainty created by rising prices elevates the role of retailers as the final influence on purchase decisions, the report found. Longer replacement cycles also highlight the need for stronger after-sales support to build long-term value. Flexible financing and affordability-led payment options can help mitigate the impact of price increases and drive conversions.
For manufacturing decision-makers, these insights suggest that pricing strategies must account for both the upward pressure on costs and the segmented purchasing behaviour of Indian consumers. While the survey does not detail specific factory capacity changes or automation investments, it reinforces the importance of cost-efficient production and supply chain agility to serve a market where nearly half of buyers are willing to spend more — but demand clear value in return.
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