Samsung targets non-metro markets to drive growth in 2025, eyes faster value expansion

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Samsung is betting big on India's non-metro markets to accelerate smartphone growth, aiming to outpace industry value expansion in 2025. As the market trends towards premiumization, the company is focusing on affordability initiatives and strengthening its A-Series lineup to capture demand in Tier 2, Tier 3, and rural areas.

"The market in terms of value is growing in healthy double digits. And in 2025, it will continue to grow at a very healthy double-digit rate. So, while shipment growth might remain stable, value growth will be very, very different," said Aditya Babbar, Vice President, MX Business at Samsung India, in an interview with Moneycontrol.

Babbar highlighted that Samsung grew faster than the market in terms of value in 2024 and aims to maintain that momentum through new launches across various price segments. "We want to continue to do that in 2025 on the back of new launches across price ranges."

The company is also doubling down on affordability through Samsung Finance, offering multiple purchasing options, particularly in Tier 2, Tier 3, and rural markets. "The Tier 2 and below, as well as rural parts of the market, are growing much faster in terms of value. A-Series is experiencing much higher demand from these parts of the country," Babbar noted.

Samsung is leveraging its A-Series to drive both volume and value market share in 2025, setting a target of selling 11 million A-Series smartphones in India.

"Today, we have around 89 million happy A-Series users, making it one of the largest smartphone series globally. In 2024, the A35 was the best-selling phone in the Rs 25,000–Rs 35,000 segment, while the A55 led in the Rs 35,000–Rs 50,000 category. Our goal for 2025 is to cross 100 million A-Series users, adding over 11 million new customers," Babbar said.

According to IDC, Samsung was the second-largest smartphone brand in India in 2024, though its volume market share declined to 13.2% from 17% in 2023. However, it gained traction in the premium segment ($600–$800), which saw a 34.9% growth.

Samsung has faced challenges with offline retailers regarding differential pricing between online and large-format stores, lower margins compared to Chinese competitors, and stock availability of popular models.

Asked if these concerns are being addressed, Babbar said, "We are keeping our ears on the ground—whether it is for consumers or the channel—to learn and do the right thing. Most of the people we work with are fairly happy with the way they are growing and the way they are continuing to co-work with us for the consumer."