Rising phone prices and longer usage boost demand for smartphone protection plans

Indian smartphone buyers are now holding onto their devices for longer periods as the cost of new handsets continues to rise, sparking a growing interest in protection plans that shield against accidental damage and costly repairs. According to Subrat Pani, co-founder of device protection specialist OneAssist, the average smartphone ownership cycle in India has stretched dramatically from around 14 months several years ago to roughly 40 months today. During just the past seven to eight months, device prices have surged by 25-27 percent, with further increases expected.

This shift is creating what Pani describes as an "inflection point" for the device protection market. As consumers spend more on smartphones and hang onto them longer, the financial consequences of damage or technical failures escalate. OneAssist estimates that protection plans are currently attached to 6-8 percent of all new smartphone purchases, up from just 1-2 percent several years ago. The uptake is even higher for premium devices; in some Apple stores, attachment rates reach 20-25 percent. Meanwhile, Cashify, a major player in the refurbished smartphone segment, reported that nearly one in five customers chose extended warranties in the last quarter.

Despite these gains, adoption rates remain highly uneven across sales channels. Pani notes that in offline and assisted retail environments, protection plans are attached to about 18-20 percent of new phones, compared to less than 1 percent for ecommerce sales. Five years ago, even offline attachment rates were just 10-12 percent. Pani attributes this gap to the "assisted sales" nature of the category, where consumers want assurance and specific explanations regarding claims processes before buying a protection plan. Since about half of all smartphone sales now happen online, this represents a significant barrier to expansion.

The growing trend of financing device purchases is also reshaping the market. OneAssist says over 60 percent of high-end handsets are now bought on credit, and the ability to bundle protection plans with monthly payments is expanding protection’s reach, even in smaller cities. Counterpoint Research found that in the second quarter of 2026, financing accounted for 57.5 percent of smartphone purchases in Tier-II markets and for 55 percent in Tier-III and smaller cities.

As device prices rise, the definition of a ‘premium’ smartphone is shifting. Phones previously considered mid-range at Rs 30,000 now retail closer to Rs 50,000. Pani argues that regardless of price, many buyers are financially stretching, making protection relevant for both mid-market and high-end consumers.

Efforts are also underway to extend protection to post-purchase scenarios and the refurbished phone market. OneAssist has begun offering protection for used devices, using diagnostic apps to assess eligibility, and partnered with Cashify to cover refurbished phones. Siddhant Dhingra, chief business officer at Cashify, noted that adoption of coverage is higher for refurbished phones priced above Rs 30,000, as buyers seek confidence in their purchase.

While the market for smartphone protection continues to grow, it remains fragmented among device makers, retailers, insurers, and third-party providers. OneAssist estimates that roughly 20-25 percent of protection plans are OEM-branded, though many are backed or administered by specialized firms. Adoption in India is also influenced by past issues; a wave of claims, fraud, and fulfilment challenges in 2017-18 dented consumer confidence, setting the segment back just as understanding of device protection was beginning to spread.

With rising prices, longer ownership cycles, and expanding credit availability, the Indian device protection market appears poised for further growth, especially if providers can address consumer trust, expand in underserved channels, and adapt to shifting patterns in the refurbished market.