AI features influence 89% of smartphone buyers in India: Flipkart-Counterpoint study

Artificial Intelligence (AI) has emerged as a core factor in smartphone purchases in India, with nearly 89% of users influenced by AI features, according to a joint report by Flipkart and Counterpoint Research.

The 'Smartphone Insights Report 2026' highlighted a fundamental shift in the Indian smartphone market, noting that consumers are moving away from specification-driven upgrades toward experience-based decisions.

"According to the report, artificial intelligence is becoming a core factor in smartphone choice, with 89% of users indicating that AI features influence purchase decisions, driven by growing reliance on AI in everyday interactions. From voice assistance and search to content creation and personalisation, AI is increasingly shaping how users engage with their devices.


"This momentum is also extending into the Rs 15,000-20,000 segment, where AI is rapidly becoming a baseline expectation rather than a premium feature," the report said, noting a 30% adoption rate for GenAI-enabled devices.

Despite the growing appetite for advanced features, affordability remains a key enabler.

The report stated that 33% of users are now opting for EMI schemes to purchase higher-spec devices.

Overall, price and value for money remain the most important decision drivers for 60% of buyers, followed by brand trust (57%) and online reviews (56%).

Usage patterns for AI vary significantly across demographics. Gen Z primarily uses AI for content creation and entertainment, millennials leverage it for productivity and planning, and women users utilise it for everyday assistance and lifestyle needs.

Design and aesthetics also play a pivotal role in purchasing decisions.

According to the data, 64% of consumers prefer colourful devices, and users are willing to pay a 5% premium for their preferred colour and material. This trend is particularly strong among women, Gen Z, and Tier-2 consumers.

"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," said Kanchan Mishra, Vice President, Flipkart Mobiles.

Tarun Pathak, Research Director at Counterpoint Research, noted that the Indian consumer base is becoming more mature and informed.

"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," Pathak said.