Samsung is reportedly planning to exit the high-value and low-value feature phone market in India. The company is planning to exit the feature phone market gradually with the last batch of devices being manufactured by local contract manufacturer Dixon in December this year. Also Read - Microsoft is bringing Xbox games to Samsung’s smart TVs
According to a report by ET Telecom, Samsung is planning to focus on smartphones in the higher market tiers. Once the last batch of feature phones has been manufactured, the company will launch mostly above Rs 15,000. The company has already spoken with its channel partners and they are ready to exit the Indian feature phone market in the next couple of market by the end of this year. Also Read - Samsung Galaxy S23 Ultra: Here's what the 2023 flagship may look like
The report quoting analysts said that the move comes as the Korean electronics giant is required to manufacture phones worth Rs 15,000 factory price in order to be eligible for the government’s Production Linked Incentives (PLI) scheme. Also Read - Volkswagen Virtus launched in India at Rs 11.21 lakh: Check variants, other details
The move is also in sync with a latest report by Counterpoint Research, which suggests that India’s feature phone market has witnessed a decline of 39 percent year-on-year owing to supply chain issues, inflation and lower consumer demand.
“The feature phone market registered a decline of 39% YoY. Supply issues, high inventory levels and softening of consumer demand due to high inflation were the major reasons for this decline. itel led the feature phone market in Q1 2022 with a 21% share. itel has been the top feature phone brand for nine consecutive quarters,” the report said.
The same report also says that the Samsung’s overall market share in India declined by one percent in the first quarter of 2022. However, it remained the top selling 5G smartphone company in India for the second quarter in a row.
Furthermore, the report says that Samsung has been to strengthen its foothold in the higher value smartphone segment. “The company also maintained a lead in the affordable premium segment between Rs 30,000 and Rs 45,000,” the report by Counterpoint Research said adding, “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.”
Under the circumstances, it would make sense for Samsung to focus on higher value smartphones.