Samsung s mobile business in India has seen an increase of 27 percent in revenue to more than Rs 34,000 crore for the year ending March 2017. It is one of the fastest growth rates in recent time for the company, helped by both expansion of retail channels and local manufacturing. Samsung also said that it expects a similar pace of growth in the current financial year. Also Read - Bad news for Galaxy S21 FE fans: Samsung may only launch it in select marketsAlso Read - Galaxy Z Flip 3, Galaxy Z Fold 3 official teasers from Samsung leak
Out of the total business, mobile phones accounted for 60 percent revenue for FY17, a rise of 20 percent to about Rs 57,000 crore, compared to 19 percent growth in 2015-2016, with revenue of Rs 47,000 crore. Last year, the mobile business revenues excluded the ill-fated Galaxy Note 7 that was globally recalled due to battery issues, and didn t get released in India at all. Also Read - Samsung Galaxy M32 in pics: First look at the Redmi Note 10S competitor
In October 2016, Samsung has to recall Galaxy Note 7 devices from global markets due to faulty batteries that overheated, causing explosion. While the smartphone was not launched in India, analysts believe that might have shaved off the company s revenue by Rs 6,500 crore, ET reports.
Samsung India’s senior vice-president for mobile business, Asim Warsi said, “had the Note 7 been there, the numbers could have been better… our Note users wait for the next model, which has resulted in high uptake of Note 8 when it came to the market.”
Warsi further added saying that the revenue growth for the current financial year is expected to be the same as FY17, with help from the popular J-series mid-range smartphones, and the Galaxy S8 and Galaxy Note 8 models in the high-end segment.
Samsung s rival Apple saw a growth of 17 percent to Rs 11,618 crore for year ending March 2017, which is the slowest growth in the past five years. Chinese rival Xiaomi, on the other hand, has seen its revenue surge eight-fold by about 700 percent, with revenue of Rs 8,379.3 crore last year, the ET report says. Now, despite Samsung being ahead in terms of revenue, it has been losing market share to Chinese smartphone companies such as Oppo, Vivo and Xiaomi among others.
According to a recent data from Counterpoint Research, Samsung had a market share of 22.8 percent in September end, compared to Xiaomi s 22.3 percent market share. In 2017, Samsung started with a market share of 26 percent, whereas Xiaomi had 13 percent. Other Chinese smartphone makers such as Lenovo, Oppo and Vivo have gained some market share as well, and they together hold more than 54 percent.
When asked about competition, Warsi said that Samsung had a market share of 46 percent by value, and 60 percent in premium segment, which is for smartphones priced above Rs 30,000. “I wouldn’t comment on any specific competitor but I would reiterate that our approach to the Indian consumer and the market thereof has always been that of serving the market and consumer, not addressing specifically competition in that sense,” Warsi said.