Despite price hikes, smartphone demand stays strong

New Delhi: Majority of smartphone users are still willing to buy a smartphone despite steep price hikes continuing through the year as high component costs weigh on brands, Counterpoint Research found in a survey of over 2000 customers.

46% respondents said they are willing to pay a premium to buy their desired handset even if the prices are higher. In this, majority are young users aged 25-30.

This group includes consumers who are willing to stretch their budgets, opt for affordability-driven payment options, or even switch ecosystems to purchase their preferred smartphones, the research firm said.


29% said they will stick to their budget or buy a refurbished smartphone, most of whom are aged over 50. The remaining 25% said they will delay their purchase if prices rise further, preferring to keep using the handset they have or repair their existing handsets.

Counterpoint said the dependence on smartphones have grown manifold, 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 segments.

The research firm said growing awareness of price rises are shaping expectations for the 2026 festive season where brands offering a balanced portfolio across adjacent price points are likely to benefit.

"Consumers are increasingly looking for stronger value through discounts, exchange offers, financing options and other affordability-driven promotions before making their purchase," said Arushi Chawla, senior analyst, Counterpoint Research.

Counterpoint added that amidst the uncertainty created due to the price hikes, the role of retailers have become elevated as the final purchase influencer.

"At the same time, longer replacement cycles highlight the need for stronger after-sales support to build long-term value, while flexible financing and affordability-led payment options can help mitigate the impact of price increases and drive conversions," Counterpoint said.