Share of consumers opting for EMI plans has increased to 70-80% this year from 50-60% last year, as retailers extend repayment tenures to manage affordability amid rising product prices.
Consumers are increasingly turning to no-cost EMI schemes to purchase smartphones and consumer durables as successive price hikes put pressure on household budgets.
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According to retailers and dealers, the penetration of EMI-based purchases has increased to 70-80% this year from 50-60% last year. At large-format retail stores, the share has risen to nearly 80% from 65-70% previously.
Retailers are also witnessing an increase in the tenure of no-cost EMI schemes, with repayment periods extended by around six to seven months. The longer tenures are aimed at making purchases more affordable and supporting demand amid rising prices of mobile phones and consumer durables.
Smartphone Prices Rise Up To 40% For New Launches
Smartphone prices have witnessed a significant increase in 2026. Prices of existing smartphone models have risen by around 23% on average, while new launches have seen an average increase of nearly 40% as of October 2026.
The price increases come at a time when India's smartphone market is witnessing a slowdown. Smartphone shipments declined 26% year-on-year to 35.8 million units in the July-September quarter of 2026, according to industry estimates.
Smart TV, AC Prices Also See Increase
Smart TVs have witnessed an average price increase of 8-10% since March 2026. The price hikes have coincided with a decline in volumes, with smart TV sales falling 7-9% year-on-year in the September quarter.
Air-conditioner prices have increased by around 18-20% on average till October 2026. However, demand for ACs has remained relatively resilient despite the price increases.
Retailers have reported strong demand in the southern and western regions, supported by prolonged summer conditions.
Why Are Mobile And Consumer Durable Prices Rising?
A sharp increase in memory prices has emerged as a key factor behind higher smartphone and television prices. Memory prices have increased nearly fourfold since December 2025, raising input costs for manufacturers.
The depreciation of the rupee has also added to the cost of imported components, putting further pressure on manufacturers.
In the air-conditioner segment, higher raw material costs have contributed to price increases. Copper prices, an important input for AC manufacturing, have risen by around 26-48% till October this year.
With manufacturers passing on a part of the higher input costs to consumers, retailers are increasingly relying on financing schemes and longer EMI tenures to sustain purchases.
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