Samsung Will Stop Selling These Phones In India: Only Rs 15,000 & Above Phones Will Be Sold By Samsung?

Samsung is reportedly planning to exit the high-value and low-value feature phone market in India.

The process will be gradual with the last batch of devices being manufactured by local contract manufacturer Dixon in December.

Last Batch In Production

The smartphone giant is now shifting its focus to smartphones in the higher market tiers.

Once the last batch of feature phones have been made, the company will start selling phones that are mostly above Rs 15,000.

It has already spoken with its channel partners and they are ready to exit the Indian feature phone market by the year end.

PLI Scheme

The decision comes on the back of its requirement to manufacture phones worth Rs 15,000 factory price in order to be eligible for the government’s Production Linked Incentives (PLI) scheme.

The Rs 15000 threshold is the requirement for foreign companies whereas domestic brands can get incentives by making cheaper phones.

Shrinking Market

It also coincides with a report by Counterpoint Research which shows that India’s feature phone market has declined 39% year-on-year.

Some issues plaguing the market are supply chain issues, high inventory levels, lower consumer demand owing to high inflation.

Pecking Order 

itel led the feature phone market in Q1 2022 with a 21% share and has been the top feature phone brand for nine consecutive quarters.

Samsung’s overall market share in India declined by one% in the first quarter of 2022, putting it at number 3 with a 12% share.

The top two are itel and Lava.

Other Factors

However Samsung remains the top selling 5G smartphone company in India for the second quarter in a row.

Then there are also company ambitions to gain a stronghold in the higher value smartphone segment.

It has been particularly thriving in the affordable premium segment between Rs 30,000 and Rs 45,000.

A report by Counterpoint Research said that the launch of its latest S22 series and revamping of the A series and M series across price tiers towards the quarter-end drove Samsung’s shipments.