Samsung to manufacture Galaxy S6 & S6 Edge in India from next quarter

Samsung that had a 22% market share in the smartphone space in the quarter to December, according to IDC, will separately invest Rs 517 crore.

Samsung to manufacture Galaxy S6 & S6 Edge in India from next quarter
NEW DELHI: Samsung will begin making its Galaxy S6 and Galaxy S6 Edge smartphones in India within the next quarter, after similar plans for its Tizen-based phones, as it pins hopes on the latest smartphones to consolidate its position in the world’s fastest-growing market in this segment.

Samsung launched its flagship devices — Galaxy S6 and Galaxy S6 Edge, which has curved edges on both sides —on Monday in India and priced them lower than the iPhone 6 and iPhone 6 Plus, in an attempt to draw buyers in the premium smartphone space to the South Korean brand that has seen sales and profits dwindle globally.

“In a couple of months from now, we should start seeing production of S6 and S6 Edge from India,” Asim Warsi, marketing vice-president for mobile business at Samsung India, told ET. “India is an important region for Samsung globally. India has a disproportionate amount of focus, investment and effort to grow the business and presence in smartphones”.

Samsung’s plans to set up a third local manufacturing unit and to make the Z1 — the first smartphone on its own operating system Tizen targeted at entry-level segment — fit in with the company’s local production strategy.

The company plans to invest top dollars in setting up its third production facility, for which it is talking to several state governments. Samsung has a production facility each at Noida and Pune. The Noida facility produces feature phones and smartphones.

Samsung that had a 22% market share in the smartphone space in the quarter to December, according to IDC, will separately invest Rs 517 crore in expanding its Noida facility.
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The local manufacturing plans also come together with the government’s ‘Make in India’ campaign, which it is using to encourage local manufacturing and employment.

“By making in India, any company will get a 9-10% advantage on cost as the import duty on devices has been raised to 11% but there’s no duty on components,” said a senior executive, explaining the benefits that a local phone maker has over others that import mobile phones.

Galaxy S6 and S6 Edge will be offered online and offline from April 10 in three storage variants. Galaxy S6 will be priced at Rs 49,900 for 32 GB, Rs 55,900 for 64 GB and Rs 61,900 for 128 GB. Galaxy S6 edge is priced at Rs 58,900, Rs 64,900 and Rs 70,900, respectively.

The prices undercut iPhone 6, which was launched in October atRs 53,500 and iPhone 6 Plus, which had a sale price of Rs 80,500 in 16 GB, 64 GB and 128 GB versions.
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“An existing Apple user may not move to the S6 or S6 Edge but Samsung has given a strong successor to existing Samsung S5 customers.

This will create a duopoly with Samsung and Apple in the super-premium segment and will double volumes in this category from 1 million units a quarter,” said Tarun Pathak, senior analyst at Counterpoint Research.
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“We could see some EMI’s or buybacks from the S5, which can also push sales for the S6 and S6 Edge.”
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Samsung Galaxy S6: 15 things to know
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Although the resolution of the phone's rear camera remains at 16 megapixels, cameras on both sides will have wider openings to let in more light and make for sharper photos.

The phone boasts of a 5MP (front) camera.
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The screen remains 5.1 inches, but the display resolution increases to 577 pixels per inch, up from 432 in last year's Galaxy S5.

By comparison, Apple's 4.7-inch iPhone 6 has 326.
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By comparison, Apple's 4.7-inch iPhone 6 has 326.
Previous Samsung phones had removable plastic backs, so the battery could be swapped with a spare.

Samsung now joins Apple, HTC and others in favoring a better design over that replacement capability. Samsung is promoting the new phone's ability to charge quickly - in 30 minutes they can reach 50 percent.
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The fingerprint sensor is also improved. Instead of swiping down on the home button, you simply touch it, much the way you already do on iPhones.

S6 is slightly lighter, thinner and narrower than the S5, though a tad taller.
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Samsung is also making an S6 version of its Gear VR virtual-reality headset, which currently works only with the Galaxy Note 4.
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Some technology publications described the phone as Samsung's best-looking to date after its previous flagship device, the Galaxy S5, failed to impress.
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In addition to camera and screen upgrades, Samsung stripped out many of its unpopular in-house apps that infuriated users by gobbling up memory.
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The new phones will be powered by Samsung's own 64-bit, 14-nanometer Exynos processors, a departure from its previous reliance on Qualcomm Inc's chips.
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