Samsung trying to sustain its leadership in the Indian smartphone market

Samsung announced its earnings guidance for Q2 2015 earlier today, and its situation hasn’t improved much, because the company underestimated the demand for the Galaxy S6 edge, resulting in profit decline for seven quarters in a row. Now, the company is trying to sustain its leadership in India, which is one of its most important markets around the world. Samsung is already the biggest smartphone brand in India in terms of market share, and according to a report by Strategy Analytics, Samsung is trying to keep it that way by introducing new low-end and mid-range smartphones in the country. The South Korean smartphone giant has reportedly scheduled to introduce new Galaxy J series of smartphones in India in September. The company has already introduced the Galaxy J1 in India, and the next in line will be the Galaxy J2, Galaxy J5, and the Galaxy J7.

The company introduced its first Tizen-based smartphone, the Z1, in India earlier this year, and managed to sell over 100,000 units. However, that’s nowhere close to the sales of entry-level smartphone sales from brands like Xiaomi, Lenovo, Micromax, and Motorola. The Galaxy J, Galaxy E, and Galaxy A series of smartphones are meant to strengthen the company’s low-cost and mid-range portfolio, but it is experiencing huge competition from low-cost high-specification devices like the Xiaomi Redmi 2, Lenovo A7000, Micromax’s YU Yuphoria, Mi 4, and the OnePlus One.

Currently, India is the third largest smartphone market in the world, showing tremendous growth potential. It is poised to become the second largest smartphone market in the world, surpassing the US with an expected sales of 174 million units in 2017. Many smartphone vendors are entering the Indian market due to such huge growth potential, but it will not be easy for them. Cut-throat competition is expected in the low-end and mid-range segment as it makes up for 80 percent of the Indian market, and half of all the smartphone sales. Samsung has managed to maintain top position in the country’s smartphone market, and is expected to continue a similar performance for the time being. It registered a market share of 25.1 percent, which is decently ahead of Micromax’s 19.5 percent market share.

Indian government’s ‘Make in India’ campaign is expected to work in Samsung’s favour since it already has local production facilities in India. The company’s third largest smartphone manufacturing facility is in India after China and Vietnam, and the company is looking to set up one more facility in the country with an investment of $100 million. It already revealed the plans to manufacture its flagship devices, the Galaxy S6 and the Galaxy S6 edge, in the country.


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Samsung are not getting the point.
instead of releasing new devices every day they need to provide OS upgrades to their devices.