Business News | AI, Aesthetics Drive India's Smartphone Market, Consumers Willing to Pay More for Preferred Choices: Report
Get latest articles and stories on Business at LatestLY. Personal expression is becoming a primary driver in the Indian smartphone market, as 64 per cent of consumers prefer colourful devices, and users expressed a willingness to pay an additional 5 per cent for preferred colour and material choices.
New Delhi [India], April 30 (ANI): Personal expression is becoming a primary driver in the Indian smartphone market, as 64 per cent of consumers prefer colourful devices, and users expressed a willingness to pay an additional 5 per cent for preferred colour and material choices.
This preference is especially strong among women, Gen Z, and Tier-II consumers, highlighting the growing role of style and finish alongside core specifications, according to the Smartphone Insights Report 2026, released by Flipkart in collaboration with Counterpoint Research.
The report, unveiled at an industry event attended by over 400 creators, brands and industry partners, indicated a fundamental shift where consumers moved toward more intentional, experience-driven decisions.
Artificial intelligence is now a core factor in smartphone selection, with 89 per cent of users noting that AI features influence their purchase decisions. This trend extended into the Rs 15,000-20,000 segment, where AI capabilities are becoming a baseline expectation rather than a premium feature.
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Usage patterns for these technologies varied across different demographic groups. As per the report, Gen Z uses AI primarily for content creation and entertainment, while millennials focus on productivity and planning. Women users frequently utilised AI for everyday assistance and lifestyle needs.
These advancements are moving toward integrated experiences, such as AI agents and multimodal interactions across text, voice, and image.
Rising baseline expectations are redefining standards across the category. High demand for content consumption and app-heavy usage makes larger displays, more storage, and stronger battery life essential needs.
Consumer behaviour is evolving from a focus on individual specifications to seamless performance across use cases. According to the report, approximately 57 per cent of users are willing to pay more for camera quality, and 45 per cent are willing to invest more in performance.
Kanchan Mishra, Vice President, Flipkart Mobiles, said, "Consumers today are seeking smartphones that deliver a combination of performance, intelligent features and everyday reliability. At the same time, accessibility is becoming increasingly important as more users look to upgrade to higher-spec devices. Deeper penetration among Gen Z and non-metro consumers is reinforcing more deliberate, experience-led purchase decisions."
Despite the focus on new features, purchase decisions remained grounded in value and affordability. Price and value for money drove 60 per cent of decisions, followed by brand trust at 57 per cent. As device prices increase, 33 per cent of users opt for EMI schemes to access higher-spec models.
Improving durability and higher costs are also extending replacement cycles from 3.5 to 4 years, making upgrade decisions more deliberate.
Tarun Pathak, Research Director, Counterpoint Research, said, "India's smartphone market is undergoing a transition in how consumers evaluate devices, with growing emphasis on camera capabilities, performance and Al-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."
The rise of quick commerce is further influencing consumer expectations for faster delivery and instant access to devices. Industry dynamics, including a significant increase in memory costs, contributed to pricing pressures and drove interest in refurbished or value-driven alternatives. (ANI)
(The above story is verified and authored by ANI staff, ANI is South Asia's leading multimedia news agency with over 100 bureaus in India, South Asia and across the globe. ANI brings the latest news on Politics and Current Affairs in India & around the World, Sports, Health, Fitness, Entertainment, & News. The views appearing in the above post do not reflect the opinions of LatestLY)