Smartphone price hikes may disrupt festive demand as Indian buyers turn cautious: Trakin Tech-Techarc study

Joint research based on nearly 6,000 consumers highlights growing price sensitivity in India’s smartphone market, with many buyers expected to delay upgrades, seek financing options, or shift to lower-priced alternatives.

India’s smartphone market could face mounting demand pressure if device prices continue to rise, according to a new study released by Trakin Tech and Techarc. The report, titled “What Will India Do if Smartphones Keep Getting Pricier?”, suggests that a significant section of consumers may postpone purchases or alter buying decisions as higher component costs push smartphone prices upward.

The study, based on responses from 5,958 active smartphone buyers across India, comes at a time when smartphone manufacturers are grappling with increased memory component costs. According to the report, rising NAND flash and DRAM prices have forced brands to revise pricing across categories, with the sub-₹20,000 segment witnessing some of the sharpest increases.

Buyers likely to delay purchases amid rising costs

Among consumers planning to purchase smartphones during the festive season period, nearly half indicated they would defer their purchase if prices exceed expectations. The study found that while some buyers would opt for lower specifications to stay within budget, others are increasingly considering EMI-based purchases or refurbished devices as alternatives.

Researchers noted that buyers aged 35-44 are the most likely to postpone purchases, reflecting growing financial pressures and competing household expenses. In contrast, consumers aged 18-24 emerged as the most resilient segment, displaying stronger aspirations to upgrade despite price increases. The study also found that owners of premium smartphones are less sensitive to price hikes than buyers in the mid-range category.

Festive season seen as crucial for smartphone brands

The report suggests that the anticipated demand slowdown may not be permanent, as many consumers are delaying purchases rather than abandoning them altogether. This makes the upcoming festive season a critical period for smartphone brands seeking to convert hesitant buyers through targeted offers and financing schemes.

“The message from Indian consumers is loud and clear: they still want better smartphones, but not at any price. If prices continue to rise, buyers will wait, compromise, finance, or move to refurbished devices. This is a wake-up call for every smartphone brand,” said Arun Prabhudesai, Founder, Trakin Tech.

Faisal Kawoosa, Founder and Chief Analyst, Techarc, said, “This year it has become extremely critical for smartphone brands how they approach the festive season. The intended buyers show divergently different signs of resilience and cohort behaviours which the brands need to bedrock their strategy on. The era of ‘one size fits all’ is over.”

The study concludes that brands will need more focused, segment-specific strategies as affordability increasingly becomes a decisive factor in India’s smartphone buying journey.