OneAssist has highlighted a growing consumer protection gap in India’s smartphone market, as device prices have surged by up to 40% across select models. The increase in ownership costs has also driven up repair and replacement expenses, making protection plans increasingly critical for users.
Low Adoption Despite High Financial Risk
Despite rising risks, adoption of protection plans remains significantly low. Out of over 15 crore smartphones sold annually in India, fewer than 1.5 crore devices are covered under structured protection plans. This leaves a majority of consumers exposed to potential financial loss in case of damage or device failure.
Standard Warranties Fall Short of Real-World Risks
Most smartphones come with manufacturer warranties, but these typically exclude accidental and liquid damage, which are among the most common causes of device failure. With repair costs ranging between 20% to 50% of the device price, and replacements costing even more, the lack of coverage creates a substantial financial burden for users.
Large Untapped Base of Unprotected Users
The protection gap extends beyond new buyers. India has an estimated 70 crore smartphone users, many of whom do not opt for protection at the time of purchase and are left without accessible options later, further widening the coverage gap.
HawkEye AI Aims to Bridge the Coverage Gap
To address this challenge, OneAssist has introduced HawkEye, an AI-powered solution designed to enable protection plans for existing devices. The platform uses advanced AI-driven assessments to evaluate device condition accurately, allowing users to onboard into protection plans even after purchase.
Pushing AI-Driven Protection in a High-Risk Market
With smartphone dependency continuing to grow and device costs rising, OneAssist’s HawkEye initiative signals a shift toward AI-led protection solutions, aiming to make coverage more accessible and reduce financial risk for millions of smartphone users in India.
Leadership Quote
Commenting on the trend, Subrat Pani, Co-founder of OneAssist, said: “At OneAssist, we see firsthand how financially disruptive an unprotected device can be for households. Repair bills can run into tens of thousands of rupees without warning, making protection no longer optional but essential. As smartphones become indispensable, a protection plan acts as a critical layer of financial and functional security,helping users avoid sudden expenses, ensuring access to reliable service, and eliminating the anxiety of using a high-value device without coverage.This strain is felt even more when you look at high-value devices. More than 60% of the high end devices today are bought on credit. When the repair bill or the EMI of the replacement device adds up to the EMI, the financial stress becomes very evident.”
He further added, “Our internal data shows that nearly 30% of claims occur within the first three months of purchase. This highlights how unpredictable accidents can be. With a protection plan, customers can get their devices repaired with quality assurance without bearing 40–50% of the cost themselves.”
“With increasing ownership cycles of smartphones going up to 40 months, many customers expressed the need to protect their existing devices. However, assessing device condition at scale was a major challenge. HawkEye solves this through AI-led diagnostics, enabling accurate assessment and seamless onboarding. The response has been extremely encouraging; we’ve seen a 10X increase in plan adoption within just six months of launch. In over a decade of observing the protection and assistance industry evolve, I believe this is an inflection point. Protection plans can no longer be a value-added feature, a customer should make it an integral part of the smartphone buying journey. Simply put, it is a smart hedge against the spiraling cost”, added Subrat Pani, Co-founder of OneAssist.
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