A third of smartphone buying likely to be financed this year

In 2023, one-third of smartphone sales in India is projected to be financed, seeing a notable increase from 25% in 2022 and 18% in 2021, driven by brands offering attractive schemes in response to a surge in festive season purchases.

- Gulveen Aulakh

“Since the post-covid time, 2023 will see the highest-ever share of smartphones that are bought by consumers using finance schemes. Half of the sales of the premium segment (above ₹30,000) is expected to be from easy finance options. For affordable segments (sub- ₹30,000), this will be the first time that the share will rise to 25% of total sales," said Tarun Pathak, research director at Counterpoint Research.

In 2022, about 25% of premium smartphones, including Apple, Samsung, and OnePlus, were sold through staggered payment plans, most at zero interest or processing fee, data revealed.

The trend is gaining traction in the sub-premium segments, with brands such as Xiaomi and HMD Global tying up with financing partners, including banks and non-banking financial institutions.