Artificial intelligence is moving closer to becoming a standard smartphone feature, but it has yet to displace the fundamentals that have traditionally shaped buying decisions, according to e-commerce platform Amazon India’s ‘Best in Tech’ survey. Among more than 40,000 respondents surveyed in July 2026, 82 per cent said AI features influence their smartphone purchase decisions. However, performance and speed remained the top consideration at 87 per cent, followed by battery life at 79 per cent and camera quality at 77 per cent. The findings indicate that consumers are becoming more comfortable with AI, but continue to judge a smartphone on how well it performs everyday tasks.

“AI features are now a baseline expectation for customers, and that expectation is showing up across price bands. What has not changed is that customers still judge a phone on performance and battery first, and they are willing to move up a band when the value is clear to them,” said Zeba Khan, Consumer Electronics Director at Amazon India told Business Standard.

AI moves from differentiator to expected feature

Among AI capabilities, buyers are looking for features that provide practical assistance rather than simply adding AI branding to a device. Contextual assistance was the most sought-after AI capability, with 25 per cent of respondents choosing it. This includes features that understand what a user is doing and offer an action, such as searching content on the screen or suggesting a reply.

Generative photo editing was the second-most preferred AI feature at 18 per cent, followed by visual search at 17 per cent. Adaptive battery management accounted for another 11 per cent, highlighting the overlap between AI capabilities and the core smartphone experience.

The shift could also put pressure on smartphone makers to make AI features available across a wider range of devices, rather than limiting them to premium models. Whether consumers will pay a higher price specifically for these capabilities, however, remains an important question as smartphone components and memory costs rise. 

  Performance and battery remain critical

Despite the growing importance of AI, the survey shows that consumers continue to prioritise established smartphone specifications. Performance and speed ranked first among purchase considerations at 87 per cent, while battery life and camera quality followed at 79 per cent and 77 per cent, respectively.

Battery life also emerged as the biggest pain point with existing smartphones. About 22 per cent of respondents said it was the aspect they most wanted their current phone to improve, ahead of camera quality at 17 per cent and performance at 12per cent. This indicates that while buyers may be interested in AI-powered features, they are still looking for devices that can reliably meet basic everyday requirements.

Buyers are moving up the price ladder

The survey also points to growing interest in higher-priced smartphones. Forty-two per cent of respondents are considering the Rs 25,000 - Rs 50,000 segment for their next device, while one in three is considering a smartphone priced at Rs 50,000 or more. This includes 15 per cent looking at Rs 50,000 – Rs 75,000 devices and 17 per cent considering phones above Rs 75,000. Only 7 per cent are considering smartphones priced below Rs 15,000.

The trend also mirrors the broader premiumisation of the smartphone market. As previously reported by Business Standard, Counterpoint Research found that smartphones priced at $600 and above accounted for a record 29 per cent of global smartphone sales in the first half of 2026, up from 25 per cent a year earlier. The shift comes despite higher memory costs and weaker overall smartphone demand.

The report also highlighted that the premiumisation trend is not restricted to large cities. Among respondents considering smartphones priced above Rs 75,000, 18 per cent were from metros, compared with 17 per cent from Tier-2 cities and 15 per cent from Tier-3 cities.

Reviews matter more than discounts

Consumers are also taking a more research-led approach before upgrading. More than half of respondents 54 per cent said they keep their smartphones for two years or longer, while 48 per cent  plan to upgrade within three months. At the point of purchase, reviews and ratings were cited by 47 per cent as an important consideration, ahead of price and deals at 35 per cent.

This could make the upcoming festive sales period particularly important for smartphone brands and retailers, especially as buyers increasingly weigh premium devices against their overall value. The extent to which discounts, exchange offers and other promotions can offset higher smartphone prices will depend on how consumers respond to the rising cost of AI-enabled devices.

“Every year, customers across Bharat choose the Amazon Great Indian Festival to upgrade their smartphones, laptops and appliances, and this season they will continue to see the largest selection and deals from brands and sellers on premium as well as value products, delivered across the country,” said Khan.

Higher smartphone prices put focus on value

The shift towards higher-priced smartphones comes at a time when device costs are rising. Smartphone prices in India have already increased as manufacturers pass on higher memory and component costs, with brands such as OnePlus, Samsung and Oppo raising prices by Rs 1,000-5,000 across several models in recent months. Business Standard reported that average smartphone prices rose 14.4 per cent year-on-year in Q2 2026, while a Counterpoint analysis suggested prices could rise another 5-7 per cent in the next quarter.

This premiumisation is taking place even as smartphones become more expensive. Higher memory and component costs have pushed brands to raise prices across segments, with recent increases of Rs 1,000-5,000 reported across models from OnePlus, Samsung and Oppo. Average smartphone selling prices in India rose 14.4 per cent year-on-year in Q2 2026, according to IDC. Against this backdrop, Amazon’s survey suggests that consumers are still willing to consider higher price bands, but are looking for clear value in return, with performance, battery life and camera quality ranking ahead of AI features.