At a time when the country is seeing a massive rollout of 5G, Samsung is on track to capitalise on the opportunity. The smartphone maker is eyeing a double-digit growth and a 75% revenue contribution of 5G devices to its overall smartphone business in India in 2023. It is banking on new 5G smartphone launches, flagship features at affordable rates and its easy financing options for consumers as drivers for its market penetration.
“In 2022, our smartphone business grew by over 20%, which was the fastest growth that we have seen in the last four years. And it gives us much more confidence that with our consumer first, innovation first approach we will be able to drive the overall 5G business for Samsung and improve the contribution there,” Raju Pullan, senior VP, consumer electronics business, Samsung India, told FE.
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Last year, Samsung bagged the top position among handset makers with a market share of 22% in terms of value, it said. For Samsung, 5G smartphones contributed 61% to its overall smartphone business, higher than industry average of 56%.
While the company did not share the revenue and shipment numbers for 2022, it sold 28.6 million smartphones in the country with a market share of 19%, according to research firm Canalys. In 2021, it sold 30.1 million smartphones.
Currently, the starting price of a Samsung 5G smartphone is around `14,000. When asked about the further reduction in prices and affordability of 5G phones, Pullan said, “Consumers are ready to pay for products that will deliver the right experience to them. If we are able to provide the right value for money and great features and design to the consumer, they will not hesitate to upgrade or move up the ladder.”
One of the key drivers to grow its 5G smartphone penetration is its Samsung Finance Plus option, through which consumers can buy phones on EMI (equated monthly installment). “It is very important to have a strong affordability programme and that is how we are leveraging Samsung Finance Plus through which a consumer is paying the EMI for a 5G phone similar to 4G. There’s no reason why the consumer will not look forward to flagship design features in the 5g segment, even in the mid-price range,” Pullan said. In the affordable price segment, 80% of Samsung’s sales happen on its Finance Plus platform, he added.
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In a bid to penetrate the market at a faster pace through new launches, Samsung this year started with an early launch of its new smartphones. On Monday, the company launched its Galaxy A14 and Galaxy A23 5G phones starting at a net effective price of `14,999 and `20,999, respectively.
Among few specifications, both the smartphones come with 5,000 mAh battery, with up to two days of power, up to 16GB RAM with intelligent memory expansion feature, 50 megapixel camera, among others. The company said 120Hz refresh rate of Galaxy A23 5G is best-in-segment. A higher refresh rate enables smooth scrolling and quick content update on the screen.
“It is the first time after a very long duration that we have launched models early in an year. This means a very start for Samsung,” Pullan said, adding that the new launches in the affordable segment will drive its 5G penetration.
On supply chain and current demand constraints, the company said there are no challenges on both the sides at present.
