EMI plans now fund up to 80% of Indian electronics sales as prices rise

Retailers say instalment purchases have surged as higher phone and appliance prices squeeze household budgets, while smartphone shipments fall and repayment periods lengthen.

Retailers in India say instalment financing is becoming central to sales of smartphones and household appliances as higher prices strain consumers’ budgets. NDTV Profit reported that dealers put the share of purchases made through EMI plans at 70–80% this year, up from 50–60% last year. At large-format stores, they said, the proportion has reached almost 80%, compared with 65–70% previously. Repayment periods for no-cost schemes have also lengthened by roughly six to seven months, lowering monthly payments while spreading the cost over a longer period.

The shift comes as handset prices rise and sales volumes weaken. NDTV Profit said existing smartphone models were about 23% more expensive on average by October 2026, while prices for new releases had risen by nearly 40%. Counterpoint Research’s tracker put the average increase for existing phones in India at 21%, the steepest among the markets it assessed, and said new models globally cost 25% more than year-earlier equivalents. The differing figures reflect separate estimates and measures of price changes.

Omdia estimates, reported by Digit, show Indian smartphone shipments fell 26% year on year to 35.8 million units in the July–September quarter. The report links the contraction to higher prices, cautious spending and fewer replacement purchases; delayed festive stock-building also affected quarterly shipments. The decline followed a 13% annual fall in shipments in April–June, according to Omdia, which cited rising memory costs, rupee depreciation, inflation and weak retail footfall among the pressures on demand.

Price increases extend beyond phones. NDTV Profit reported that smart television prices had climbed by 8–10% since March, while sales volumes fell 7–9% year on year in the September quarter. Air-conditioner prices were up around 18–20% by October, but demand was comparatively firm in southern and western India, where prolonged summer conditions supported purchases. ICICI Direct Research also reported planned increases from October for appliances including televisions, washing machines and refrigerators, citing higher metals, freight and currency costs.

Higher component costs are a key factor behind the price pressure. NDTV Profit said memory prices had risen nearly fourfold since December 2025, while a weaker rupee increased the cost of imported parts. Copper, used in air-conditioner manufacturing, had also risen substantially. Counterpoint Research noted that some phone makers were changing specifications, including storage and camera configurations, to manage costs. It said consumers were responding by delaying upgrades or considering refurbished devices, while financing and trade-in offers helped soften the impact.