Shift in India’s Smartphone Market: The Rise of Financing Options
India’s smartphone landscape is experiencing a significant pivot away from upfront payments, with financing mechanisms emerging as a prominent catalyst for sales as device prices steadily escalate.
According to the Monthly Smartphone Financing Tracker for May 2026 by Counterpoint Research, financing alternatives—ranging from NBFC loans to credit and debit card EMIs—are projected to account for 42% of total smartphone sales by 2026, a notable increase from 35% in 2025.
The surge in component pricing, particularly in memory, has driven smartphone costs upwards, prompting consumers to adopt instalment payment plans over lump-sum transactions.
Elaborating on this trend, Research Director Tarun Pathak noted that the market has faced considerable pressure during the year’s initial half due to escalating memory prices, a challenge anticipated to intensify in the forthcoming months.
He remarked that smartphone financing is evolving into a fundamental purchasing method, especially as financial accessibility becomes a pressing concern.
Pathak mentioned that approximately 67% of financed smartphone units are linked to NBFCs, underscoring their pivotal role in broadening credit availability.
Financing initiatives driven by NBFCs have shown considerable traction in Tier 2 and Tier 3 cities, where opportunities for credit card EMI schemes provided by banks are comparatively scarce.
A significant number of first-time credit consumers in these locales are increasingly turning to NBFCs for their smartphone acquisitions.
Pathak predicted that the approaching festive season would be largely influenced by demand spurred by financing, coupled with upfront discounts, as brands and retail outlets emphasize long-tenure EMIs and exchange programs to amplify sales.
From a brand perspective, Senior Analyst Prachir Singh pointed out that Samsung reigns supreme in the smartphone financing arena.
This dominance is attributed to the company’s integration of Samsung Finance+ alongside other financing modalities, as well as a diverse array of EMI tenures spanning various price brackets.
He added that brands with a retail-focused strategy, such as vivo and OPPO, are also witnessing an uptick in financing utilization due to enhanced in-store support that aids consumers in comprehending financing options.
Counterpoint’s latest consumer survey revealed that hidden fees and ambiguity surrounding terms and conditions are still the primary deterrents for some buyers when it comes to financing alternatives. Among NBFCs, Bajaj Finance leads the smartphone financing sector, trailed by TVS Credit.
It is anticipated that the share of financing in India’s smartphone market will continue to grow through the remainder of 2026.
As premium and mid-premium brands increasingly rely on long-tenure EMIs to drive sales volumes, financing is poised to facilitate the ongoing transition towards higher-priced devices, ensuring they remain accessible to a wider demographic.
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