AI Features Drive 89% of Smartphones Purchases in India: Flipkart-Counterpoint Report

Artificial Intelligence Emerges as Key Factor in Indian Smartphone Purchases

Artificial Intelligence (AI) has become a core factor in smartphone purchases in India, with nearly 89 per cent of users influenced by AI features, according to a joint report by Flipkart and Counterpoint Research. The 'Smartphone Insights Report 2026' highlights a fundamental shift in the Indian smartphone market, with consumers moving away from specification-driven upgrades toward experience-based decisions.

The report notes that consumers are increasingly relying on AI in everyday interactions, from voice assistance and search to content creation and personalisation. As a result, AI is rapidly becoming a baseline expectation rather than a premium feature, particularly in the Rs 15,000–20,000 segment, where a 30 per cent adoption rate for GenAI-enabled devices has been observed.

Despite the growing appetite for advanced features, affordability remains a key enabler. The report states that 33 per cent of users are now opting for EMI schemes to purchase higher-spec devices. Price and value for money remain the most important decision drivers for 60 per cent of buyers, followed by brand trust (57 per cent) and online reviews (56 per cent).

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Usage patterns for AI vary significantly across demographics. Gen Z primarily uses AI for content creation and entertainment, millennials leverage it for productivity and planning, and women users utilise it for everyday assistance and lifestyle needs.

Design and aesthetics also play a pivotal role in purchasing decisions. According to the data, 64 per cent of consumers prefer colourful devices, and users are willing to pay a 5 per cent premium for their preferred colour and material. This trend is particularly strong among women, Gen Z, and Tier-2 consumers.

The report highlights that consumers today are seeking smartphones that deliver a combination of performance, intelligent features, and everyday reliability. Accessibility is becoming increasingly important as more users look to upgrade to higher-spec devices. This trend is driven by a more mature and informed consumer base, which is pushing brands to focus on delivering consistent, high-quality experiences across price segments.

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Kanchan Mishra, Vice President, Flipkart Mobiles, notes that consumers are seeking smartphones that deliver a combination of performance, intelligent features, and everyday reliability. Tarun Pathak, Research Director at Counterpoint Research, adds that the Indian consumer base is becoming more mature and informed, with an increasing intent among users to make more considered upgrade decisions.