Zero‑Cost EMI and Trade‑In Fuel Super‑Premium Sales in Indian Market

The second quarter of 2026 saw Indian smartphone shipments contract by 10 percent on a yearly basis, per Cybermedia Research data published on Monday.

The report cites restrained consumer expenditure, rising component prices and longer handset replacement cycles as key reasons for the dip.

Despite the broad slowdown, the premium segment (prices above ₹25,000) expanded 54 percent, with the super‑premium tier (₹50,000‑₹1 lakh) soaring 72 percent.

Analyst Menka Kumari highlighted that zero‑cost EMI options, trade‑in incentives and consumer credit schemes are now critical levers for converting buyers in the high‑end market, eclipsing pure AI or camera specifications.

Budget‑oriented categories continued to shrink—affordable phones fell 88 percent YoY, and value‑for‑money models slipped 30 percent.

The report also notes a 5 percent rise in 2G feature‑phone shipments versus a 43 percent fall in 4G models, and projects an overall 10‑12 percent market contraction for the full 2026 calendar year.