Brands absorb EMI costs to lift demand
Smartphone and electronics brands are extending EMI payment periods up to 30 months this festive season, a significant increase from the typical 8 to 10 months. This move, aimed at lowering monthly payments and making high-priced phones more affordable, absorbs the financing costs and helps counter rising prices, which have raised smartphone sales by more than 12% year-to-date.
With handset prices soaring 30-35% on average, brands like Samsung, Vivo, Realme, Xiaomi, Oppo and Nothing are offering extended financing schemes, including 30-month no-cost EMI options for foldable and S26 series smartphones. Xiaomi, Realme, and Vivo are also offering 18-month and 24-month EMI schemes on various product categories, including televisions and appliances.
The adoption of finance options, particularly for higher-priced premium products, has increased, with consumer finance schemes now accounting for 42-43% of smartphone sales this year, up from 35% last year. Retailers and e-commerce platforms anticipate this trend to grow, with finance-led purchases expected to comprise nearly half of high-value electronics purchases during the festive season.
Written by urgent.news from The Economic Times's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
