Rising prices are steering more Indian consumers towards EMI payment plans, with financing now accounting for 42% of smartphone sales, especially in Tier 2 cities where 57.5% of purchases are made on EMI, according to Counterpoint Research.
Smartphone financing is becoming central to India’s handset market as rising prices push more buyers towards monthly payment plans, according to Counterpoint Research. The firm said average financing tenure reached 10 months in the April-June period and that the share of purchases made on EMI plans was highest in Tier 2 cities, where such deals accounted for 57.5% of sales.
Counterpoint said Tier 3 towns and smaller markets also remained highly reliant on financing, with penetration above 50%. It expects financing to make up 42% of total smartphone sales in India this year, up from 35% in 2025, as non-bank lenders broaden the range of repayment periods and brands push affordability programmes more aggressively.
The report said Samsung was the most-purchased brand through financing, followed by vivo and Apple. Apple, however, had the longest average financing period at 17.2 months, which Counterpoint said reflected greater use of longer repayment plans to bring down monthly costs on premium devices. Tarun Pathak, research director at Counterpoint Research, said consumers are increasingly judging phones by the monthly outlay rather than the sticker price, while brands and financing partners are extending EMI plans to as long as 30 months to widen access to higher-end models.
The wider market backdrop helps explain the trend. Counterpoint has separately reported that India’s smartphone shipments fell 3% in the first quarter of 2026, the weakest opening quarter in six years, while another industry report said shipments dropped 10% year on year in the second quarter as memory prices rose and demand softened. Even so, financing continues to support premium sales: recent market data showed Apple’s iPhone 17 topped volumes in the first quarter, underlining how EMI options are helping expensive phones reach more buyers.
Disclaimer: This article is intended to inform and educate, not to recommend or endorse any financial product, investment or strategy. Please consider your own financial circumstances and seek professional advice where appropriate before making financial decisions.
