AI, Performance and Affordability Emerge as Key Drivers of Smartphone Buying in India: Counterpoint Research X Flipkart Report

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AI, Performance and Affordability Emerge as Key Drivers of Smartphone Buying in India: Counterpoint Research X Flipkart Report

April 29, 2026: Flipkart, India’s homegrown e-commerce marketplace, in collaboration with Counterpoint Research, unveiled the Smartphone Insights Report 2026 at Flipkart - India’s Favourite Smartphone Awards, attended by over 400 creators, brands and industry partners.


The report highlights a fundamental shift in India’s smartphone market, where consumers are moving beyond spec-led upgrades toward more intentional, experience-driven purchase decisions, balancing performance, AI capabilities and long-term value.


As the category matures, this evolution reflects a transition from rapid adoption to more considered, need-based buying behaviour, with consumers increasingly prioritising how devices fit into their everyday usage across work, entertainment and content creation.


Artificial Intelligence Becomes a Key Purchase Consideration

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.


Usage patterns vary across cohorts. Gen Z uses AI for content creation and entertainment, millennials for productivity and planning, and women users, in particular, for everyday assistance and lifestyle needs, highlighting how AI adoption is both widespread and use-case driven. This momentum is also extending into the ₹15,000–20,000 segment, where AI is rapidly becoming a baseline expectation rather than a premium feature.


At the same time, AI capabilities are evolving beyond individual features toward more integrated experiences, with the emergence of AI agents, hyper-personalisation, and multimodal interactions across text, voice, image and video. Increasing device integration and a shift toward conversational interfaces are redefining user interaction, while advancements in on-device AI are enabling faster, more context-aware experiences.


Rising Baseline Expectations Are Redefining Smartphone Standards

Baseline expectations are rising across the category, with features that were once considered premium steadily becoming standard. This is being driven by increasing demand for content consumption, app-heavy usage and high-quality imaging, alongside growing interest in GenAI-enabled devices (30% adoption).


As a result, consumer behaviour is evolving:

● From specs to experience

Consumers are prioritising seamless, end-to-end performance across use cases rather than individual features.

● Core features as baseline

Performance, camera and battery are now essential expectations, not key differentiators.

● Willingness to invest in better everyday usage

With 45% willing to pay more for performance and 57% for camera, users are prioritising reliability and consistency.

● Higher usage driving higher expectations

Larger displays, more storage and stronger battery life are increasingly seen as baseline needs.

● Shift toward more deliberate upgrades

Greater focus on longevity and value is leading to fewer, more considered purchase decisions.


Value, Affordability and Lifecycle Shifts Are Reshaping Purchase Decisions While expectations continue to rise, purchase decisions remain grounded in value and affordability. Price and value for money (60%) remain the most important decision drivers, followed by brand trust (57%) and online reviews (56%). As device prices increase with premiumisation, affordability is becoming a key enabler, with 33% of users opting for EMI schemes to access higher-spec devices. At the same time, higher costs and improving durability are extending replacement cycles from approximately 3.5 to 4 years, making upgrade decisions more deliberate.


Industry dynamics are further shaping this behaviour, with up to 4X increase in memory costs contributing to pricing pressures and driving interest in refurbished and value-driven alternatives. The rise of quick commerce is also influencing expectations, with consumers increasingly seeking faster delivery and instant access to devices.


Design and Personal Expression Influence Smartphone Choice

Design is playing a more important role in smartphone choice, with 64% of consumers preferring colourful devices and users willing to pay an additional 5% for preferred colour and material choices. This preference is especially strong among women, Gen Z and Tier 2 consumers, underscoring the growing role of style, finish and self-expression alongside core specifications.


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. At Flipkart, we are focused on enabling this shift by expanding our selection, strengthening affordability options and enhancing delivery capabilities to make these innovations available to a wider set of consumers.”


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 AI-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.”


As these trends evolve, smartphone adoption will be driven by how effectively devices deliver across performance, AI capabilities, imaging and affordability, with overall user experience emerging as the key differentiator across segments.


About the Flipkart Group

The Flipkart Group is one of India’s leading digital commerce entities with a strong technology-first foundation and includes group companies Flipkart, Myntra, Flipkart Wholesale, Cleartrip, and super.money. Established in 2007, Flipkart has enabled millions of sellers, merchants, and small businesses to participate in India's digital commerce revolution. With a registered user base of more than 500 million, Flipkart’s marketplace offers over 150 million products across 80+ categories. Today, there are over 1.4 million sellers on the platform, including Shopsy sellers. With a focus on empowering and delighting every Indian by delivering value through technology and innovation, Flipkart has pioneered services such as Cash on Delivery, No Cost EMI, Easy Returns, and UPI payments. Beyond shopping, Flipkart continues to create jobs, empower entrepreneurs, and strengthen India’s digital economy.


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AI, Performance and Affordability Emerge as Key Drivers of Smartphone Buying in India: Counterpoint Research X Flipkart Report