Smartphone financing tenure in India averaged 10 months in Q2 2026, with Tier 2 cities emerging as the most financing-driven market segment, where EMI plans accounted for 57.5% of all smartphone purchases, according to a report released on Monday, 10 August 2026 by Counterpoint Research. The findings point to a structural shift in how Indian consumers are acquiring smartphones — monthly affordability now matters more than upfront price.

Key Findings from the Report

Tier 3 and smaller markets also held financing penetration levels above 50%, signalling that NBFC-led affordability programmes have moved well beyond metro boundaries. Overall smartphone financing is expected to account for 42% of total smartphone sales in India in 2026, though online channels continue to record lower financing penetration compared to mainline retail.

In mainline channels specifically, financing is projected to cross the 50% mark, driven by the expanding reach of non-banking financial companies (NBFCs) and more flexible repayment structures being offered by brands and retail partners.

Brand Performance: Apple Leads on Tenure, Samsung on Volume

Apple recorded the highest average financing tenure among all smartphone brands at 17.2 months — well above the national average. This reflects the growing use of longer-tenure plans to reduce monthly ownership costs and support consumer upgrades to higher-value devices, the report noted.

Samsung retained its position as the leading brand in terms of units sold through financing, followed by vivo and Apple. The divergence between Apple's tenure leadership and Samsung's volume leadership underscores how different segments of the market are engaging with financing differently.

What the Industry Is Saying

'The role of smartphone financing is all about making monthly ownership more affordable. Consumers today are increasingly looking at how much they need to pay every month rather than focusing solely on the device's upfront price,' said Tarun Pathak, Research Director at Counterpoint Research.

Pathak added: 'Brands and financing partners are introducing more flexible financing programs, including EMI plans extending up to 30 months, to keep monthly payments affordable and make premium smartphones accessible to a wider consumer base.'

The report also noted that 'India's smartphone financing ecosystem continued to evolve in Q2 2026 as brands increasingly focus on improving affordability through more flexible repayment structures.'

What Is Driving the Growth

Three factors are cited as the primary growth drivers: the expanding reach of NBFC financing in non-metro markets, rising consumer aspirations to upgrade to higher-value smartphones, and the availability of more flexible affordability programmes from brands and retail partners. NBFCs, in particular, are now offering a wider range of EMI tenures to suit varying consumer budgets across income segments.

What to Watch Next

With EMI tenures now stretching to 30 months and financing penetration crossing 50% in Tier 2 and Tier 3 markets, the next inflection point will be whether online channels — currently lagging in financing adoption — begin to close the gap with mainline retail. How brands price their longer-tenure plans amid interest rate movements will also be a key variable heading into the second half of 2026.