The Indian smartphone market is undergoing a significant shift. This shift is happening not just in terms of the features and availability of devices but also in the way consumers buy and use their smartphones. In recent times, we have seen the upgrade cycles of devices, including smartphones, getting longer and buyers increasingly relying on financing options. We have also witnessed the prices of smartphones going up and a change in buyer behaviour wherein specifications alone aren’t enough to influence a buying decision. Overall value is what customers are looking for these days.
At a time when the smartphone market in India is undergoing such a major shift, Xiaomi is in the process of launching new Redmi Note series devices in India. As per company data, this series has sold over 85 million units over the course of the past 12 years since its launch in India. With its Redmi Note 17 and coming Note series devices, the company plans to solidify its position even further. In this backdrop, we sat down for a conversation with Xiaomi India’s Chief Business Office, Sandeep Singh Arora, and the company’ Associate Director of Marketing & PR, Sandeep Sarma, to know more about the Redmi Note services, consumer trends, changes in the Indian smartphone market and the impact of the global chip and memory shortage on the smartphone industry.
During our conversation, the two leaders revealed that the device upgrade cycle has witnessed a major shift, which in turn has shaped the development of the Redmi Note 17 smartphone. “…the upgrade cycle has changed from being maybe nine months to a year, which was common in 2017, to as long as four years now on average. And it’s likely to extend further into the future,” Xiaomi’s Associate Director of Marketing & PR.
Another major change in consumer behaviour is the availability of various financing options owing to the hike in prices of smartphones. “Now a lot of devices are bought with some sort of financing option, because as prices go up, consumers are saying – ‘I need a financing option to buy’,” Xiaomi India’s Chief Business Officer told HT Tech.
“Consumers are looking at the larger user experience, the entire ownership experience. Is it something that’s going to meet my needs but also be durable? You’re going to see consumers making a more informed and evolved choice, and that’s where franchises like the Note and a device like the Note 17 come in,” he added.
AI in smartphones beyond the buzzword
During our conversation, we also touched upon the subject of the use of AI-based features in Xiaomi smartphones and the AI features that users interact with the most. The Xiaomi India leadership revealed that there is more than one way that the company has included AI-based features in its devices. This not only includes popular image creation and editing tools but also battery optimization tools.
“Most people think of AI as generative — image creation, video. We believe it should be more subconscious, happening in the background to enhance the experience. The charging cycle is something the phone learns from your habits…That’s just one instance, but across imaging, camera, display — everything has an AI layer that eases the experience without the user having to intervene,” Sarma added.
As far as adoption is concerned, the Xiaomi leadership team revealed that Circle to Search, which was first introduced by Google back in January 2024, remains one of users’ most used features. “That was one feature most of our consumers have loved using. We get a lot of requests to have it in future products as well. With the HyperOS update, many devices were added to that list. Going forward, almost our entire portfolio now comes with that ability,” Xiaomi India’s CBO revealed, adding that Gallery Editor and its note-taking feature, AI Notes, are some of the other AI-based features that users keep coming back to.
“These features help a lot of people; while it might not be as flashy as the image generation where you put in a prompt, it’s actually more useful, more utilitarian, more convenient. That’s where we’re doubling down, while the other things continue to be there,” he added.
Global chip shortage and smartphone price hike in India
Lastly, we touched upon the subject that has been on everyone’s mind – will the smartphone prices rise further? The Xiaomi India leadership believes that smartphone prices will continue to increase in the second half of 2026 owing to the global chip shortage.
“The shortage has impacted all players — the market has seen a slowdown. It’s also impacted the upgrade cycle becoming longer…The challenge of the chip shortage or memory shortage is something that will continue into the second half of the year. The industry is going to see further price increases as we head into the second half of 2026, particularly the festival period,” Arora told HT Tech.
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