Small towns power festive electronics boom; Apple, Samsung lead smartphone charge: Amazon India

Amazon

Amazon India has seen a strong double-digit growth in consumer electronics in its ongoing flagship Great Indian Festival 2025, with 70 percent of the orders coming from outside Tier-1 cities.

Smaller towns are not just fuelling the entry-level gadget surge but also premium smartphones, large-screen TVs, AI-powered laptops, and smart appliances.

Categories that benefitted from recent GST cuts —televisions, air-conditioners, and dishwashers —have posted outsized gains, underscoring the twin drivers of premiumisation and tax-led affordability.

Small towns are shopping big

“The GST benefits have definitely helped in converting the pent-up demand into actual purchases across segments,” Zeba Khan, director, consumer electronics, Amazon India, told Moneycontrol.

Khan said offers have always been sharp during the Great Indian Festival, but this time, the government’s GST cut and clear communication has amplified demand.

“We saw more traffic come into these categories to discover deals,” she said. On pricing transition, Khan said it was “very seamless”.

“The prices started flowing in immediately because it’s all automated and tech-driven. All the brands —Samsung, LG, Sony — made sure that by midnight the GST-reflective prices were live,” Khan said.

The new GST regime kicked in on September 22, a day before Amazon launched the sale.

The festival season remains the backbone of Amazon’s electronics business. “Typically, at least a third of the annual business comes during the festive period,” she said. “This year’s strong start suggests the trend will hold. The combination of premium demand, GST-led momentum and improved delivery experience is what’s driving this growth story.”

Smartphones remain the anchor category, with premium models (Rs 20,000 and above) delivering nearly 50 percent year-on-year value growth and a 30 percent jump in average selling price. Apple and Samsung are the pick of the bunch alongside OnePlus and iQOO.

“Smartphones are always the traffic drivers, but this year the premium growth was especially striking,” Khan said. “Brands like Samsung, Apple, OnePlus and iQOO did very well for us. Samsung’s flagship phone, in fact, saw almost a fourfold year-on-year spike.” Apple’s iPhones and iPads also recorded robust demand, particularly in tier-two and three cities.

GST cuts, premiumisation and AI a heady mix

Large appliances are seeing a huge demand. Despite off-season, AC sales are up over 20 percent, led by smart, energy-efficient models.

Dishwashers sales are up more than 120 percent, while televisions recorded strong growth, especially large screens above 55 inches.

“Dishwashers, which are still a nascent category in India, surprised us with 120 percent growth,” Khan said. “In televisions, large screens saw much faster growth than the category average.”

The computing segment also reflected the premiumisation trend. AI-powered laptops accounted for one in five sales, while average selling prices in personal computing rose 15–16 percent.

Premium tablets surged. Apple’s iPad M3 saw a 300x spike, the Galaxy Tab S9 was up 430x, and Xiaomi Pad 7 also grew strongly.

“Customers are clearly opting for AI-powered specs,” Khan said. “One in five laptops we sold were AI-enabled.”

Amazon credited both smaller-town demand and affordability for driving momentum. “Seventy percent of orders are now coming from outside tier-one cities,” Khan said. “Consumer electronics trends in tier two and three are no different from metros. People are equally choosing premium smartphones, GST-led appliances, tablets, and PCs.”

Financing support also played a role, with more than 30 percent of premium devices sold on no-cost EMIs. “No-cost EMI penetration in premium segments is already above 30 percent, which shows how critical affordability tools are,” Khan said. “Our bank partnerships and co-branded credit card for Prime members have further strengthened demand.”

Amazon also ramped up its logistics capacity to ensure speed. In the first 24 hours, 40 percent of the orders were delivered the same or next day, while customers across all serviceable PIN codes placed orders within three days.

“Going into the festival, we invested in 12 new fulfilment centres and six new sort centres, adding space equal to 100 Olympic-sized swimming pools. That’s what has enabled us to achieve our fastest-ever deliveries,” Khan said.

Amazon rolled out guided shopping tools such as Smart Choice in laptops and the AI-powered Rufus assistant, which has already been used by over 10 million customers for review summaries. “These tools make it easier for customers to choose the right specs, whether they are gamers, creators, or students,” Khan said.