Premium smartphone demand, AI’s growing role and affordability trends: Apple authorised reseller shares key insights
The increase in smartphone prices, driven by rising memory costs and supply pressures affecting DRAM and NAND, has hit the budget segment the hardest. At the same time, the premium segment has remained relatively resilient, with an increase in demand as brands recalibrate their portfolios towards higher price bands amid changing market dynamics. We sat down with Swarn Bajaj, Founder and CEO of P3S Ventures Private Limited, which manages iNvent, an Apple Authorised Reseller in India, to discuss what is driving this shift.
Table of Contents
On what’s prompting consumers to spend more on smartphones
Swarn Bajaj:
Premium smartphone demand in India continues to grow as consumers increasingly look beyond basic specifications and seek devices that offer greater value over a longer period. This trend is being driven by a combination of rising aspirations, greater awareness of premium products, and the growing role of smartphones in consumers’ daily lives.
Consumers today have a more sophisticated understanding of what they can gain from investing in a premium smartphone. While aspirations remain an important factor, affordability schemes such as exchange offers, longer-tenure EMIs and cashback are also helping consumers make the transition to higher-priced devices.
On rising smartphone prices changing purchase decisions
Swarn Bajaj:
The recent increase in smartphone prices is an industry-wide phenomenon rather than something specific to a particular brand. Smartphone prices have increased by around 10–15 percent over the past nine months, driven by higher component costs.
With consumers already becoming accustomed to price increases over the past few quarters, affordability is now playing a greater role in purchase decisions. Exchange offers, longer-tenure EMIs and cashback are helping consumers manage the higher upfront cost.
The executive expects these factors to remain important during the upcoming festive season, rather than the market relying solely on outright discounts.
On consumers viewing premium smartphones as long-term investments
Swarn Bajaj:
Smartphones have evolved into the centre of a consumer’s connected ecosystem. Beyond calls and messaging, they are increasingly used for payments, navigation, productivity, health and fitness, and connecting with other devices such as laptops, tablets, smartwatches and wireless earbuds.
As a result, consumers are beginning to see a premium smartphone as a longer-term investment rather than simply an expensive purchase.
Factors such as durability, consistent performance over a longer period, software support and residual value are becoming increasingly important when consumers evaluate a device. This contributes to what he described as “value-led premiumisation”, where consumers want to understand the additional value they will get from moving to a more expensive device.
On the upcoming festive season sale
Swarn Bajaj:
The festive season remains a significant period for smartphone sales, with consumers traditionally more inclined to make aspirational purchases. However, the executive does not expect the upcoming festive season to be driven purely by flat discounts.
Instead, retailers and brands are combining exchange value, financing options, cashback, and other affordability schemes to help consumers manage higher smartphone prices. The growing importance of personalised assistance at physical retail stores. Consumers are increasingly looking for help in understanding the additional value offered by premium devices and finding an affordability option suited to their individual requirements.
