Smartphone war: Samsung to launch 10 devices in the next quarter in Rs 9,000-18,000 segment

KOLKATA: Samsung Electronics Company, the world’s biggest seller of smartphones, is planning its biggest blitzkrieg of launches in India in the next quarter in a bid to fend off local and Chinese rivals in the mid-segment category.

The South Korean company will introduce 10 smartphones in the July-September quarter in theRs 9,000 to Rs 18,000 segment, where it is embroiled in a fierce battle for market share with Micromax Informatics, Lenovo-Motorola and Xiaomi. According to some research companies, the rivalry led to a drop in Samsung’s market share in the high-stakes mid-segment in 2014.

Over the past few quarters, Samsung has launched mostly variants of older models such as Galaxy Grand and Galaxy Core in this segment, which have failed to stand up to competition. The new strategy is championed by Samsung India president HyunChil Hong, who took over in December. Smartphones account for 70% of the company’s revenue in India.

This will be Samsung’s largest rollout of unique models in India, according to three senior trade executives, who have been informed about the latest move by company officials and distributors.

"We do not comment on market speculation," a Samsung India spokesperson said in response to an email sent by ET. "However, Samsung is committed to the Indian market and will continue to cater to the needs of consumers with innovative products and technology."


Most of the new models will be introduced under a sub-brand called the J series and the 4G-compliant handsets will be made in India. Two models, Galaxy J7 and J5, are expected to be the first to hit store shelves early next month.

"After beating Apple in the premium smartphone segment last quarter, Samsung is now looking at extending its lead in the overall market by filling the gap with a new line-up in the Rs 9,000-18,000 segment and would spend hugely on promotions," the CEO of a leading electronics retail chain said, asking not to be identified.

The Korean giant will also launch its next flagship model, the Galaxy Note 5, in India in September, ahead of Apple’s traditional iPhone launch and in time for the festive season.

The mid-segment accounts for 30% of smartphone sales by volume in India and is second only to the entry-level category, which has 35% of sales, according to Hong Kong-based Counterpoint Technology Market Research. TheRs 9,000-18,000 segment is the fastest growing and expected to become the largest in the next two quarters.

Samsung has strongly contested data by market trackers Canalys, based in the UK, and CMR India, which show that the Korean company lost ground in this category to Gurgaon-based Micromax.

Samsung’s share in the Indian smartphone market fell from 43.2% to 23.7% in 2014 as Micromax, Karbonn and Intex gained, according to CMR India data. However, in the January-March quarter, Samsung bounced back with a 27.9% share after boosting its presence in the entry and premium segments, while Micromax was second with 16.2%, CMR India said. Analysts and retailers said the two smartphone makers are in close competition with each other and Chinese brands.

Samsung positions its smartphones more on overall experience, while its Indian and Chinese rivals highlight features such as 4G connectivity, battery capacity and screen resolution to grab the attention of consumers, according to Tarun Pathak, a senior analyst at Counterpoint. "Chinese and Indian brands have a faster time to market than Samsung, which allows them to adapt faster.

However, Samsung still has one of the most robust distribution reaches in India compared to any other vendor, but it needs to have a faster time to market along with aggressive presence in online channels, which it seems to be doing now," Pathak said.