Samsung seeks to renegotiate supply terms with centre

New Delhi: Samsung is in talks with the government to renegotiate terms of contract in supplying smartphones and IT hardware amidst rising component costs, a top company executive told ET.

While the company sees strong demand from the government sector even as consumer demand has taken a hit due to higher prices, it is attempting to rework certain terms of the contract in a bid to pass on the added costs, said Puneet Sethi, vice president, enterprise business, at Samsung India.

Samsung has won multiple tenders from the government to supply interactive displays and tablets in government-run schools. The company has also won a large contract from Indian Railways to supply rugged tablets to railway workers.


"We are talking to the government specifically trying to rework (the terms of the contract). While they are not open to that, we are trying our best to convince them," Sethi said. "We have not declared force majeure on our contracts," he added.

The development comes amid a push within Samsung to increase revenues from its enterprise business even as consumer smartphone and appliance sales have taken a hit due to a shortage in memory and other semiconductor components, leading to sharp price hikes.