‘Affordability plans’ driving sales of Galaxy smartphones in India: Samsung

In fact, Samsung’s easy-to-own lending programme is not only driving sales of premium phones but also helping first-time smartphone users own a low-end Galaxy device. He cites the case of the Galaxy A03 Core, which costs Rs 6,999 but is available at a more accessible Rs 900 per month with Finance+.

“Affordability is playing a key role in smartphone purchase across price tiers in India,” Babbar tells indianexpress.com in an interview on the sidelines of the launch of the new Galaxy A14 5G and A23 5G in the country. The smartphones start at Rs 16,499 and Rs 22,999, respectively.

Babbar says around 40 per cent of consumers buy a smartphone over affordability and in the case of Samsung, that number jumps to 60 per cent. Because of that, Samsung has grown three times as much as its competitors in reaching potential smartphone users. “If we have a great proposition compelling for good affordability, it drives consumers in the right direction,” he says.

Affordability plans that subsidise the cost to ownership of handsets and 5G connectivity have both helped Samsung increase the penetration of smartphones in a market like India where the South Korean major faces tough competition from Chinese brands like Xiaomi and Realme in recent years, claims Babbar.

The Galaxy A-series has become Samsung’s most successful smartphone series in India in recent months. (Image credit: Anuj Bhatia/Indian Express)

In the December quarter of 2022, Samsung overtook Xiaomi to once again become the biggest smartphone vendor in India with a 21 per cent market share, market research agency Canalys revealed.

Samsung’s recent performance in India’s smartphone market has a lot to do with Galaxy A-series smartphones, which is the fastest-growing series with over 10 million units. Xiaomi’s loosening hold on the Indian market had been predicted by experts for months, with many claiming its current portfolio of smartphones has become too expensive. Samsung, on the other hand, in recent months has doubled down on low-to mid-end smartphones.

Babbar may have been optimistic about the growth potential and increase in ASP of handsets, but insiders and analysts are already signaling a peak in smartphone sales in the world’s second-largest mobile phone market. In October last year, India had about 790 million wireless broadband subscribers, as per the latest figures from the country’s telecom regulator. That number barely exceeded the previous peak of 789 million, which was recorded in August 2021. Smartphones which are the primary way to access the internet in India have also grappled with slow growth in recent quarters. Canalys research shows that India’s smartphone shipments fell to 151.6 million units in 2022, declining by 6 per cent compared with 2021.

But the situation in India reflects global trends. Higher manufacturing cost, increase in the prices of chips, war in Ukraine and looming fears of an economic slowdown are all contributing to users cutting back on smartphone purchases. The slowdown in smartphone sales is taking place around the world, especially in Europe and China, with very similar quarterly declines.