As smartphone prices continue to rise, Indian consumers are increasingly choosing to protect their devices instead of replacing them. Higher handset prices, expensive repairs, and longer smartphone ownership cycles are contributing to growing demand for device protection plans across the country.
With nearly 60% of smartphones purchased on credit, financiers are also emerging as an important distribution channel for protection plans. While newer smartphones offer improved durability, accidental damage and costly repairs continue to make device protection relevant for consumers.
Premium Smartphones Drive Protection Plan Adoption
According to proprietary insights from OneAssist, more than 45% of protection plans are sold for smartphones priced above ₹25,000. The trend highlights how protection plans are becoming an increasingly important part of the ownership journey as consumers move towards premium smartphones.
The growing popularity of credit-based smartphone purchases has further expanded the role of financiers in distributing protection plans alongside device financing.
Device Protection Expands Beyond Metro Cities
The device protection industry’s attach rate has increased from around 1–2% a few years ago to nearly 7–8% today, according to OneAssist data.
Adoption is also expanding beyond metropolitan markets, with consumers in Tier II and Tier III cities increasingly opting for protection plans for their smartphones.
Screen Damage Remains the Leading Claim Reason
Despite improvements in smartphone durability, OneAssist data indicates that service requests have remained steady over the past few years, highlighting the continued prevalence of accidental damage.
Screen damage remains the leading reason for claims across both new and older smartphones. Back panel damage and motherboard-related repairs are among the other major service requirements.
Rising Repair Costs Strengthen the Case for Protection
The increasing cost of smartphone repairs is also making protection plans more attractive to consumers. OneAssist’s data indicates that repair expenses can reach nearly 45% of the value of a new smartphone and as much as 70% of the value of a refurbished device.
For consumers, these repair costs can make protection plans a more practical financial option, particularly when replacing a damaged device would require a significantly higher investment.
Longer Smartphone Ownership Changes Protection Trends
Consumers are also holding onto smartphones for longer periods, reshaping the device protection market. According to OneAssist, protection plans purchased for refurbished smartphones typically cover devices that are already 12–15 months old, while claims on these devices are most commonly raised when they reach around 17–20 months of age.
For new smartphones, claims typically peak around the eighth month of ownership.
AI Diagnostics Support Older Smartphones
The growing number of consumers retaining smartphones for longer periods has also contributed to the adoption of HawkEye AI, OneAssist’s proprietary AI-powered diagnostics platform designed for older smartphones.
AI-enabled diagnostics can support the broader device protection ecosystem by helping assess device conditions and improve the management of repair and service requirements.
Consumers Seek Better Protection Experiences
Price is no longer the only consideration for consumers evaluating device protection plans. Buyers are increasingly looking at factors such as claim transparency, service quality, turnaround time, and after-sales support.
This shift indicates increasing maturity in India’s device protection market, with consumers expecting protection providers to deliver a reliable ownership experience rather than simply financial coverage against accidental damage.
Device Protection Becomes Part of Smartphone Ownership
The combination of premium smartphone purchases, rising repair costs, credit-based financing, longer ownership cycles, and AI-enabled diagnostics is reshaping India’s smartphone ecosystem.
As consumers continue to keep their devices for longer, device protection is becoming an increasingly important part of smartphone ownership. The trend could create new opportunities for manufacturers, retailers, financiers, repair networks, and protection providers across India’s growing device ecosystem.
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