This festive season, India’s technology markets are seeing a surprising shift: the firepower driving electronics sales is increasingly coming from small towns, not just big metros. And the key players? Apple, Samsung, and a host of smart appliances riding the wave of upgraded affordability.
The Surge from Smaller Cities
Amazon India reports that during its Great Indian Festival 2025, 70% of electronics orders came from outside Tier-1 cities. This suggests that consumers in Tier-2, Tier-3 and beyond are actively embracing electronics — not just entry-level devices, but premium smartphones, smart appliances, TVs, and AI-powered laptops.
What’s helping this surge? A mix of factors:
- GST cuts on categories like TVs, air conditioners, and dishwashers — making them more affordable.
- Strong promotional activity timed with the festival season.
- Improved logistics and delivery enabling faster fulfillment in non-metro areas.
- EMI and financing tools lowering the barrier to high-ticket purchases.
Smartphones at the Heart of It
Smartphones remain the anchor for electronics sales, but this year, the growth in premium models (₹20,000 and above) is especially striking:
- The average selling price (ASP) of phones has risen ~30%.
- Popular premium brands — Apple, Samsung, OnePlus, iQOO — saw particularly strong demand.
- Samsung’s flagship phones reportedly saw almost 4× year-on-year growth on Amazon.
- Apple’s iPhones and iPads are not just selling in metros — their demand is rising sharply in smaller towns too.
Appliances, TVs & Computing See Big Gains
It’s not just phones: the shift is broad-based.
- Televisions: Large screen panels (55″ and above) saw outsized growth.
- Air Conditioners & Dishwashers: ACs are up more than 20%, while dishwashers — still a niche product in India — shot up by over 120%.
- Computers & Tablets: AI-powered laptops now account for roughly 20% of laptop sales. ASP in computing rose ~15–16%.
- Among tablets, saw 300× spike for one Apple iPad model, 430× for a Samsung Tab S9, and strong growth for Xiaomi’s Pad series.
These trends show a growing appetite not just for devices, but for smarter, more capable ones.
What’s Driving the Trend
Several forces are working together:
- Tax cuts boosting affordability
GST reductions in key appliance categories have catalyzed purchases, especially among buyers who were holding off. - Premiumisation even in smaller towns
Buyers are no longer satisfied with “good enough” — they are reaching for feature-rich, higher-end models. - Financial tools smoothing purchase decisions
Over 30% of premium devices were bought via no-cost EMIs — showing how important flexible payments are in this boom. - Faster logistics & expanded fulfillment
Amazon expanded its network with new fulfilment and sort centers. In the first 24 hours, 40% of orders were delivered same- or next-day. - Smart product discovery tools
Amazon deployed tools like AI assistants and guided shopping to help buyers in choosing the right specs.
Looking Ahead
- Smaller towns aren’t just buyers — they influence trends: Brands must tailor marketing, product mix, and delivery strategies to non-metro consumers.
- Premium demand is no longer niche: High-end products increasingly move beyond elite circles.
- Credit & financing features will matter more: Buyers want flexibility.
- Supply chains & fulfillment reach will be strategic advantages: Brands that can promise fast, reliable delivery in tier-2/3 areas will win.
This festive season shows that the landscape of consumer electronics in India is evolving — and the growth story now truly includes the hinterlands.
