New Delhi: Artificial Intelligence (AI) is rapidly becoming a decisive factor in smartphone purchases across India, with nearly 89% of users saying AI features influence their buying decisions, according to a joint report by Flipkart and Counterpoint Research.
The Smartphone Insights Report 2026 highlights a clear shift in consumer behaviour — from traditional specification-based upgrades to experience-driven decisions, where intelligent features and everyday usability take centre stage.
AI Becomes a Core Feature, Not a Luxury
The report notes that AI is no longer a premium add-on but a baseline expectation, even in the mid-range segment priced between ₹15,000 and ₹20,000. With a 30% adoption rate for GenAI-enabled devices, features like voice assistants, smart search, content creation tools, and personalised recommendations are increasingly shaping how users interact with their smartphones.
“AI is becoming central to how consumers engage with their devices in daily life,” the report observed, pointing to its growing role in enhancing user experience.
Affordability Still Key to Upgrades
Despite rising demand for advanced features, affordability continues to play a crucial role. Around 33% of consumers are opting for EMI options to purchase higher-end devices, indicating a willingness to stretch budgets for better technology.
However, price and value for money remain the top decision drivers for 60% of buyers, followed by brand trust (57%) and online reviews (56%).
Usage Patterns Differ Across Demographics
The report also highlights how AI usage varies among different user groups:
- Gen Z: Focuses on content creation and entertainment
- Millennials: Uses AI for productivity, planning, and efficiency
- Women users: Leverage AI for daily assistance and lifestyle needs
This segmentation reflects how AI is adapting to diverse user requirements across India.
Design and Personalisation Gain Importance
Beyond performance, design is emerging as a key differentiator. Around 64% of consumers prefer colourful smartphones, and many are willing to pay up to a 5% premium for their preferred design and materials.
This trend is especially strong among Gen Z, women, and consumers in Tier-2 cities, indicating a growing emphasis on personalisation and aesthetics.
Consumers Becoming More Informed
Kanchan Mishra, Vice President at Flipkart Mobiles, noted that consumers are increasingly seeking a balance between performance, intelligent features, and reliability, while also prioritising accessibility.
Meanwhile, Tarun Pathak, Research Director at Counterpoint Research, highlighted a broader shift in consumer mindset.
“Users are making more deliberate upgrade decisions based on real improvements in everyday usage, rather than just new launches,” he said, adding that this reflects a more mature and informed market.
A Shift Towards Smarter Buying
The findings underline a major transformation in India’s smartphone landscape — one where AI, user experience, and thoughtful upgrades are replacing the earlier race for higher specifications.
As competition intensifies, brands are now being pushed to deliver consistent, high-quality experiences across all price segments.