A new study by OneAssist, in collaboration with Hansa Research, highlights a significant gap between Indians’ dependence on smartphones and their adoption of device protection plans. The report, The Great Indian Smartphone Protection Crisis, finds that 82% of consumers have accidentally dropped their smartphone at least once, while 72% have experienced accidental damage.
Despite the prevalence of damage and rising smartphone prices, active protection remains low. While 36% of consumers say they have used a smartphone protection plan at some point during their ownership journey, only 6–8% currently have active protection.
The findings point to a wider challenge for the smartphone ecosystem, as consumers increasingly depend on their devices for communication, digital payments, shopping, work and entertainment, while also holding on to them for longer periods.
Accidental drops and screen damage are among the most common causes of device damage. The study finds that 36% of accidental damage incidents occur when phones slip out of pockets or bags, highlighting how routine situations can translate into potentially expensive repairs.
The impact of smartphone damage also extends beyond financial costs. 35% of respondents said they panicked immediately after dropping their phone, 24% reported fighting with someone over the incident, and 15% said they cancelled plans because of device damage. The emotional response was more pronounced among women, with 43% reporting panic after dropping their phone, compared with 33% of men.
Protection adoption remains low
Despite widespread awareness of protection plans, affordability, limited understanding of benefits and concerns around the claims process continue to act as barriers.
The study also found that consumers frequently resort to informal methods to deal with damaged devices. 29% said they had used rice to treat water-damaged phones, while 20–32% reported using tape or other temporary fixes to hold damaged devices together.
The findings suggest that consumers may recognise the need to protect their smartphones but remain reluctant to commit to formal protection products, pointing to a gap between awareness and sustained adoption.
Subrat Pani, Co-founder, OneAssist, said, “The research reflects an interesting consumer contradiction. Smartphones have become indispensable to how people communicate, transact, work and access entertainment, and accidental damage is clearly a common experience. Yet, a large number of consumers continue to navigate device ownership without any form of protection while constantly worrying about damage and breakdown. As devices become more valuable and ownership periods lengthen, consumers are increasingly looking for confidence and peace of mind throughout their ownership journey. This makes it important for the industry to better address their concerns around affordability, simplicity and trust.”
Women emerge as a more vulnerable smartphone user segment.
The study identifies significant differences in smartphone behaviour between men and women. 79% of women use smartphones for social media, compared with 69% of men, while 94% of women reported having accidentally dropped their device, compared with 80% of men.
Similarly, 79% of women reported experiencing accidental damage, compared with 71% of men. Women also reported a stronger emotional reaction to device damage, with 43% experiencing panic after a drop compared with 33% of men.
Domestic incidents involving children or pets were also reported at three times the rate among women compared with men.
Meanwhile, consumers aged 26–30 emerged as the most connected cohort, with high dependence on smartphones for communication, digital payments, shopping and entertainment.
Refurbished devices create another protection opportunity.
The research also highlights the growing role of the refurbished and pre-owned smartphone market as consumers extend device ownership cycles and increasingly exchange or purchase pre-owned devices.
70% of consumers believe protection plans are more important for pre-owned smartphones than new devices, while 30% said the availability of a warranty or protection plan would make them more likely to consider purchasing a pre-owned device.
The difference between metro and non-metro markets is also notable. 54% of non-metro consumers reported having purchased pre-owned smartphones, compared with 30% of metro consumers, indicating stronger adoption of the circular smartphone economy beyond India’s largest cities.
The findings suggest that protection could play a role in addressing consumer concerns around reliability and trust in the pre-owned device market.
Bridging the protection gap
With more than 650 million smartphone users in India, rising device prices and ownership cycles extending beyond three years, the study points to an expanding gap between the value consumers place on their devices and the protection they maintain for them.
For smartphone manufacturers, retailers, insurers and protection providers, the findings highlight the need to address three persistent barriers like affordability, claims complexity and consumer trust, while making protection easier to understand and access throughout the device ownership lifecycle.
The study indicates that protection may need to move beyond being a point-of-sale add-on towards becoming a more integrated part of the smartphone ownership journey.