NEW DELHI : New Delhi: In a sluggish consumer electronics market, the key to boosting smartphone sales is to steer clear of cookie-cutter experiences for buyers and, instead, enhance value-addition in mid-segment devices, Raju Pullan, senior vice-president and head of Samsung India’s mobile experience business, said in an interview.
According to Pullan, Samsung is targetting non-urban markets, and enhancing value of the smartphones priced below ₹50,000 to drive growth despite the challenges. “Upgrades are happening from ₹15,000 to the ₹30,000 price bracket, and from ₹30,000 to the ₹50,000 range. The latter is the fastest-growing price segment in India’s smartphone industry, with the average (year-on-year) growth in shipments at 65% in 2023. Samsung grew around 74% from a year ago in this price category.”
The company aims to avoid the commoditization of features and experiences to drive similar year-over-year growth for smartphones in this price segment this year, he said. “To understand the absence of first-time buyers one must analyze the installed base of feature phones. With over 120 million feature phone users, there’s ample room for growth across price points.”
“The 5G smartphone market, for instance, is growing much faster than other categories. If we end up commoditizing the fast-growing segments, too, that will lead to growth challenges. But, if we can offer additional value to consumers through smartphone experiences that are different, that will lead to a faster pace in new device adoption,” he added.
According to a market report by Counterpoint Research on 31 January, Samsung secured the top spot by volumes with an 18% market share. Shubham Singh, a research analyst at Counterpoint, attributed Samsung’s growth to “aggressive marketing in offline retailers, and a focused approach in the premium segment”.
Mint’s analysis of market data from three retailers revealed that Samsung’s average selling price (ASP) for smartphones is $350, or approximately ₹29,000. This year, the company will focus on products at a higher price bracket.
“To prevent the commoditization of the smartphone experience, we’re trying to introduce physical experience points for these devices across 26,000 stores. We will drive footfall to these points through internal go-to-market strategies and trade marketing initiatives. We have also trained nearly 30,000 retailers on premium features of the devices, in order to drive sales,” Pullan said.
Samsung’s strategic efforts to boost smartphone sales come amid sustained demand challenges across the industry. In terms of volume growth for smartphones, the market is muted, but value growth was in “low-double digits” last year, Pullan said.
On 31 January, Mint reported that Apple overtook Samsung in smartphone market revenue for the first time ever, with iPhone shipments hitting the 10-million mark for the first time in India. Industry analysts said Apple could grow at strong double-digit, which could be fuelling Samsung’s push to grow their ASPs in the smartphone market.
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Published: 14 Mar 2024, 08:16 PM IST