Smartphone buyers shift to premium, refurbished

Rising smartphone prices are beginning to reshape buying patterns, with consumers either stretching their budgets to buy higher-priced devices or turning to refurbished premium models, even as demand for entry-level handsets weakens.

Sales of smartphones priced below Rs 20,000 declined by more than 30% year-on-year during the initial days of the pre-Diwali festive season, as higher memory chip prices made devices less affordable. The trend is prompting manufacturers and retailers to step up discounts and cashback offers to sustain demand in a segment that accounts for a significant share of industry volumes.