A third of smartphone buying likely to be financed this year
₹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. Industry insiders said Samsung’s return to India’s smartphone market leadership position since late 2022 was on the back of its finance scheme called Samsung Finance Plus, allowing buyers to choose from a variety of payment plans, including card-based cash back plan, exchange or an 11-month EMI option, which was longer than the six months plans provided by other brands.
The South Korean major for the first-time allowed loan takers to avail the finance options across cities, towns, and villages, yet managing to maintain the lowest delinquency rates among industry peers. Industry executives said that finance schemes will be preferred by consumers following the 30% increase in prices of smartphones in the past 12-24 months.
“Average sale prices are rising, though smartphone market is shrinking, which means consumers are asking for high-end devices that are at higher price points and that’s where affordability plays a big role," said Ravi Kunwar, vice president-India and Asia Pacific at HMD Global. The firm is offering digitally-approved loans without any paperwork under HMD EasyPay, in partnership with DMI Finance.
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