It has just been a month since the Samsung Galaxy S5 was launched in India and it has already seen a price erosion of 17.5 percent from its launch price of Rs 51,500. Whether the price erosion is official or not (I’m going with not), the fact of the matter is that the flagship Samsung Android smartphone is now available for less than Rs 42,500 from Flipkart.
Last time when the Galaxy S5′s price on Flipkart dropped below Rs 47,000, Samsung India had issued a statement saying that it had not slashed the price of its latest smartphone and the official price remained Rs 51,000. But whether Samsung likes it or not, the price of the Galaxy S5 has since then been in a free fall, having shed another Rs 1,000 since last week.
Samsung has not done itself any favors either as it announced a buyback scheme that brought the price of the Galaxy S5 to Rs 44,000 if you traded your old smartphone and it added a Rs 5,000 voucher on top, which could be redeemed for an accessory from Samsung India’s online store.
Samsung India refused to comment on BGR India‘s questions related to the pricing of the Galaxy S5 on online retail stores. Meanwhile brick and mortar store owners are not very pleased with the price erosion.
According to emails reviewed by BGR India, a contingent of retailers have reached out to Samsung India for a solution. Apart from the pricing by online retailers like Flipkart, these retailers are not pleased that Samsung India is offering Galaxy S5 buyers a voucher worth Rs 5,000 for its own online store, which further takes away customers from their stores.
Earlier this week, reports surfaced about Vineet Taneja, Samsung India’s country head for mobile and digital imaging, resigning from his position. One reason for his decision was the difference of opinion between him and the headquarter about the growth rate of Indian smartphone market in the high-end segment. In March, BGR India had exclusively reported about the pressure the Indian management were under to deliver numbers.
While it is too early to say Samsung’s best days in India are behind it, there is no doubt that these are not very comfortable days for the South Korean electronics giant. Hopefully, the reshuffling of roles that just took place within Samsung India will be enough for course correction.