Counterpoint: AI drives 89% of phone purchases

Smartphones are turning into AI products first and hardware products second. That is the real takeaway from Flipkart and Counterpoint Research’s new India survey — released on April 29 — which says 89% of buyers now let AI features influence their phone purchases. The bigger shift is not that people like AI demos. It’s that they are starting to treat AI as part of the basic phone experience, especially in the midrange. That changes what brands have to build, what chips matter, and what “good enough” means in India’s biggest phone price bands. ### What actually changed? For years, phone buying in India was mostly a spec-sheet game — more megapixels, more RAM, bigger battery, lower price. That logic is still there, but it is no longer the whole story. Flipkart and Counterpoint’s “Smartphone Insights Report 2026” says buyers are moving toward experience-led decisions, with AI features now shaping purchase intent for nearly 9 in 10 consumers. ### Why is 89% such a big deal? Because that number says AI has crossed over from “nice extra” to “expected feature.” Once something influences almost every purchase decision, brands cannot keep it locked inside flagship phones. The report also says 58% of users engage with AI every day across things like voice assistance, search, content creation, personalization, entertainment, and productivity. That makes AI less like a showroom trick and more like a habit. ### Is this only about expensive phones? No — and that is the part phone makers will care about most. GenAI-enabled phone adoption has already reached 30% in the ₹15,000 to ₹20,000 segment, which is a crucial midrange band in India. Basically, buyers are telling brands they want premium-style software experiences without paying flagship prices. That pushes companies to bring newer chips, on-device AI features, and better memory setups into cheaper models faster than before. ### So do classic specs still matter? Yes, but the hierarchy is changing. Counterpoint’s related India consumer survey says 84% of respondents rate the processor as very important, and the same batch of reporting says camera quality and performance remain top upgrade triggers. In other words, AI is not replacing hardware. It is riding on top of it. If the chipset is weak, the AI experience feels slow, and the whole pitch falls apart. ### Why does the replacement cycle matter? Because people are holding phones longer — roughly 4 years now, up from about 3.5 years in the report coverage. That means each purchase carries more pressure. Buyers want a device that will stay useful for work, video, photos, payments, and now AI tasks over a longer stretch. When replacement cycles lengthen, “future-proofing” starts to matter more than flashy launch-day specs. ### Where does affordability fit in? Right in the middle of the story. Price and value remain the top purchase driver for 60% of buyers, and 33% are using EMI plans to stretch into better devices. So this is not a story about Indian buyers suddenly ignoring cost. It is a story about buyers becoming pickier — willing to pay more, but only when the extra money clearly improves everyday use. uses AI for what? Usage splits by cohort. Gen Z leans toward content creation and entertainment, millennials toward productivity, and women users toward lifestyle and daily assistance in the report’s breakdown. That matters because “AI phone” is not one feature. It is a bundle — editing tools, search, writing help, translation, summaries, and camera tricks — and different groups value different parts of that bundle. ### Bottom line The headline is not really that AI influences 89% of purchases. The headline is that India’s smartphone market is maturing. Buyers still care about price, cameras, and processors — but now they also expect software that feels smart every day. Brands that can deliver that in the midrange will have the advantage.