[E-Daily Reporter Shin Yeong-bin ] The share of installment and financed purchases in the Indian smartphone market is growing rapidly. As the cost of handsets rises due to higher prices for components such as memory, consumers are increasingly opting for loans from non-bank financial companies (NBFCs) or credit card installment plans instead of paying in full with cash.

According to market research firm Counterpoint Research on the 5th, the share of financed purchases in India’s smartphone sales is projected to expand from 35% last year to 42% this year. Financed purchases include loans from non-bank financial companies (NBFCs), credit card installments (EMI), and debit card installments (EMI).

The Indian smartphone market has been under pressure in the first half of this year due to rising memory prices. Counterpoint anticipates that this upward price trend will intensify. Consequently, analysts note that financed smartphone purchases are becoming the primary method of purchase.

It was found that approximately 67% of smartphones sold on credit in India were purchased through NBFCs. The report explains that, as bank credit card-based installment programs are often limited in small and medium-sized cities, demand for NBFC financing is growing, particularly among new credit customers.

Tarun Pathak, Research Director at Counterpoint Research, said, “The Indian smartphone market has been under pressure in the first half of this year due to rising memory prices, and this trend is expected to intensify,” adding, “Under these circumstances, smartphone purchases through financing are becoming the primary method of purchase.”

By brand, SamsungElectronics(005930)ranked first in smartphone sales through financial purchases, followed by Vivo and Apple. SamsungElectronics leverages its own financial service, “Samsung Finance Plus,” along with various other financial options; its strength lies in offering long installment periods across different price ranges.

Analysis showed that brands with strong offline distribution networks are better positioned to expand finance-based sales. This is because mainstream retail-focused brands such as SamsungElectronics, Vivo, and Oppo can explain installment terms directly to consumers in-store. Counterpoint cited hidden fees and unclear terms and conditions as the main reasons consumers are reluctant to use finance-based purchases.

Prachir Singh, a senior analyst at Counterpoint Research, explained, “SamsungElectronics is leading the market in terms of smartphone sales through financing,” adding, “Its strategy of leveraging Samsung Finance Plus and other financing options is proving effective.”

Among NBFCs, Bajaj Finance is leading the smartphone finance market, followed by TVS Credit. Counterpoint forecasts that brands and distribution channels will seek to secure demand through strategies that ease the burden of purchase, such as long-term installment plans, trade-in programs, and upfront discounts.

As smartphone prices continue to rise, the trend toward premiumization in the Indian market is likely to accelerate further through financial products. This is because long-term installment plans increase accessibility to high-end products, thereby supporting purchases of mid-to-high-end and premium smartphones.