Samsung strides into India’s smaller cities for smartphone growth

“In many parts of Indian rural towns, I see that consumers are more attached to the experience. The strategy is to build experience stores across all towns, especially in rural markets, where consumers can walk in, and our promoters or field sales force can help them touch, learn, and experience the technology. This is something that you just cannot get from an online experience,” said J B Park, President and CEO, Samsung West Asia, on the sidelines of the launch of Galaxy S25 in San Jose, California. 

The company currently has 400 Samsung Exclusive Stores (Economy), which it plans to double by the end of 2025. These smaller stores serve as touch points for consumers to buy a Samsung Galaxy smartphone in smaller cities, as many still travel to a physical store in a nearby big city to shop. It’s a clear sign that for many large smartphone players, the preference is shifting to increasing offline sales channels, although traditional e-commerce platforms also remain important to increase volumes. 

JB Park, President and CEO of Samsung Southwest Asia, held a media briefing on the sidelines of Galaxy Unpacked in San Jose, California, on Wednesday. (Image credit: Anuj Bhatia/Indian Express)

India remains a key target market for global smartphone brands such as Samsung and Apple due to a combination of a rising middle class and a young population with an appetite for the latest smartphones, not to mention the size of the market itself. But this is more of a global trend as key markets US, Europe and China show tepid growth prospects for smartphone giants, India is more promising and has opened new routes to expansion.

However, in India, the premium segment is on the upswing, and more consumers are opening up their wallets to buy high-end smartphones, often through EMIs, trade-in programs, and by taking advantage of “affordable” schemes. This makes companies like Samsung even more focused on the premium smartphone segment and perhaps banking on the fact that second-tier and third-tier cities in India are gradually driving the growth of the smartphone market.

India’s smartphone market is projected to cross $50 billion in value by 2025, driven by the ongoing trend of premiumisation. In fact, according to market research firm Counterpoint, the retail average selling price (ASP) of smartphones in India is expected to exceed $300 for the first time this year.

Samsung is increasingly looking to tap into India’s smaller cities, as competition in the smartphone segment has risen—both from Apple and Chinese phone makers—in recent quarters. (Image credit: Anuj Bhatia/Indian Express)

More brands have realised the importance of “affordability” schemes in making premium smartphones more accessible in a large market like India, and becoming even more crucial to reach consumers in smaller cities. 

Samsung, for example, operates its Samsung Finance+, which has been active since 2019 and has become an enabler for college students who don’t yet have a credit card to own a premium Samsung Galaxy smartphone.

“If you look at states like Bihar, Jammu and Kashmir, or the Northeastern states, there are many areas where we have more than a 60 to 70 per cent attach rate with our Samsung Finance+ to serve these needs,” said Park.