Samsung ramping up investments to grow smartphone sales in 'Bharat' markets

Raju Pullan

Samsung is ramping up its investments in the retail channel to grow business in "Bharat" markets or tier three and below markets. The Korean major is also cautiously optimistic about the potential growth of the smartphone market in India, which is expected to be driven by the transition from 4G to 5G in 2024.

“The market was muted in 2023, but we are cautiously optimistic about 2024. We are bullish on the 5G segment. 5G will continue to grow as there is a huge upgrade opportunity across price segments,” Raju Pullan, head of mobile business at Samsung India, told Moneycontrol.

He said that the overall handset industry’s contribution of 5G in smartphones was about 52 percent, while Samsung’s contribution was 61 percent in 2023. “We will grow faster than the industry and target a 70- 75 per cent share in 2024,” Pullan said, adding that Samsung will remain committed to its 5G-first strategy.

He said that much of the focus and investment will be on growing “Bharat” or tier 3 and lower markets. Samsung has created 26,000 experience points and trained 30,000 staff to support device sales in these markets. “These Bharat markets are growing faster due to premiumisation. We are scaling up the retail ecosystem,” said Pullan.

The handset maker is also bullish on the growth in the premium market, especially the Rs 30,000-50,000 segment. “In this segment, consumers largely aspire for flagship-like features when they upgrade their smartphones,” he said, adding that the company expanded its A series with new launches to drive sales.

“The A series is Samsung’s largest single-selling series. With premiumisation in the A series, adoption and overall revenues will buoyantly upwards,” Pullan said.

On March 14, Samsung launched the Galaxy A55 and Galaxy A35 smartphones, boasting flagship-like features such as Gorilla Glass Victus+, AI-enhanced camera capabilities, a tamper-resistant security solution, and the Samsung Knox Vault. The Galaxy A35 is available for Rs 30,999, while the A55 is available for Rs 36,999.

The executive revealed that Samsung will increase the number of launches in 2024 to 20 models, compared with 16 models in the previous year, to maintain its leadership in the overall smartphone market and 5G space.

Samsung also intends to grow its tablet and laptop businesses in India to build a connected ecosystem play in the country, similar to Apple’s device ecosystem.

Pullan said that the tablet category has entered the upgrade cycle, and consumers are looking to buy premium devices for productivity and entertainment requirements. “We are seeing movement in the tablet category. Most people bought tablets during the Covid period...now, the cycle of upgrades for the category is visible.”

Pullan said Samsung is seeing strong traction for its laptops and will continue to invest in establishing the category in India. “Consumers are looking for a connected experience. The connected ecosystem is something that's helping us build that.”

Samsung also plans to manufacture laptops at its Noida factory in India this year.