Samsung is one of the world’s largest smartphone makers, ranking alongside Apple, Xiaomi, and other well-known brands at the top. While Company has a strong presence in the premium and mid-range segments in India, it appears to be struggling in the cheap segment due to increased competition. According to the Economic Times, the South Korean behemoth is planning to depart India’s feature phone market soon.
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According to the rumour, Samsung will only launch smartphones that cost more than Rs. 15,000 in the future. That, however, may not be the case. Samsung has affirmed that, despite abandoning the feature phone market, it will continue to release phones under Rs. 15,000.
As previously stated, Samsung has announced that it will shortly exit the Indian feature phone market. However, it would continue to release low-cost phones under Rs. 15,000 and will not stop doing so. This makes perfect sense, given how readily available 4G has become and how the demand for inexpensive devices has risen dramatically during the COVID-19 pandemic.
Samsung has indicated that it will leave the Indian feature phone market in the near future, as previously mentioned. It will, however, continue to release low-cost phones under Rs. 15,000 and will do so in the future. Given how widely available 4G has become and how demand for low-cost devices has surged rapidly during the COVID-19 pandemic, this makes perfect sense.
Samsung To Exist Feature Phone Market
According to Counterpoint Research, feature phone shipments in India fell by 39 per cent in the first quarter of 2022 due to supply chain challenges, excessive inventory levels, and a lack of demand due to high retail inflation. Samsung was formerly the market leader in this sector, but by the end of March, it had dropped to third place with only a 12 per cent market share.
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According to Counterpoint, the feature phone segment contributed 1 per cent in value and 20 per cent in volume to Samsung’s entire quarterly shipments by March. This will allow Lava, HMD Global’s Nokia, and Itel to enter the market. The business has been attempting to reclaim its dominance in the higher-end smartphone market.
According to reports, Samsung executives forecast double-digit growth in the June quarter. It had risen to the top in March, with a 22 per cent market, thanks to 5G handsets costing more than Rs. 15,000.
According to Counterpoint, Samsung has been the most popular 5G smartphone brand in India for the past two quarters. According to analysts, Samsung’s proposal was influenced by the government’s PLI scheme for local device manufacture.
To profit from this scheme, multinational firms must produce phones that cost more than Rs. 15,000 in India. Samsung had partnered with Dixon to produce its low-cost phones in the United States. With feature phone demand at an all-time low, it’s only natural for Samsung to call it quits.
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Varushi Yadav
I'm a 4th-year law student at the University of Petroleum and Energy Studies, along with that I'm a creative content writer. So far I have written law-related articles, I like to explore more and I'm always ready to learn more.