Samsung eyes 40% share in India's mid-tier smartphone market

Currently, the company has 28% share of this segment

Samsung Electronics has launched more affordable phones and expanded its consumer credit program to grab a larger chunk of India’s mid-range smartphone sales pie.

The South Korean electronics giant hopes its 2022 Galaxy A series will help it capture 40 per cent share of the Rs 20,000-45,000 segment in the first half of the upcoming financial year, its marketing chief, Aditya Babbar, told DH.

Currently, the company has 28 per cent share of this segment, according to Counterpoint Research.

Babbar said the updated Galaxy A-series was aimed at offering smartphones with premium features at a lower price point in the world’s No. 2 smartphone market.

The mid-tier smartphone segment has seen phenomenal growth in recent times. “Factors like increased usage, availability of financing options, upgrades and push from OEMs’ side are contributing to its growth,” said Counterpoint Technology Market Research analyst Shilpi Jain, who pegged the growth in 2021 at 87 per cent.

On Tuesday, Samsung announced the addition of five new models.

“We want to democratise the technology for our customers and make it available to users of the mid-size category,” Babbar said in an interview on the sidelines of the launch.

Analysts said the new products made sense in a price-sensitive market like India.

“Mid-size price segment, which is also led by upgraders, will not compromise on specifications and yet would want it to be pocket-friendly with higher refresh rate,” said Upasana Joshi, Research Manager - Client Devices at IDC India.

Brands which manage supplies well and offer smartphones with superior features at affordable prices will lead the market, Joshi pointed out.

Samsung, which originally launched the consumer credit program in India three years ago, said it decided to expand it after seeing huge demand for it in the world’s second-most populous country.

“Samsung Finance Plus”, a lending platform, is available in over 50,000 stores across India.

“Over 50% of our customers on the platform are new to credit, who have never availed loans in their life,” Babbar told DH.

The average selling price of smartphones rose in India in 2021 due to cost pressures and supply constraints – a trend seen across brands and not just limited to Samsung.

“Hence mid-range price segments have gained momentum,” stated Joshi.

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