Samsung expects double-digit smartphone business growth in June quarter
In the January-March quarter, Samsung’s smartphone business grew 9% in value year-on-year, driven by the flagship S22 series and the A-series.
“We expect this momentum to continue for us. We left March with a number one position in terms of volume and value. We expect digital double growth in the second quarter,” Raju Pullan, senior vice president, MX business, Samsung India, told ET. “March was one of the best months in the last 15 months.”
Samsung dominated the Indian smartphone market in March, capturing 22% of shipment volume and 27% of revenue share, according to Counterpoint Research Monthly India Smartphone Tracker. The company has lagged China’s Xiaomi for a few years and has been pushed into third place by Vivo in recent quarters.
But Samsung regained second place in the March quarter and also remained India’s top-selling 5G smartphone brand for the second consecutive quarter, market trackers said.
“This growth is commendable given that the entire industry is facing supply chain constraints as Samsung, by leveraging its vertical integrated supply chain expertise and scale, could better manage shortages. Samsung has built strong momentum to capitalize and maintain its lead,” said Neil Shah, vice president of research at Counterpoint.
Pullan said the company expects its share in the Rs 20,000-45,000 segment, supported by Series A, to increase to 40% in the first half of this year from 25%.
In the 5G market, Pullan said the industry is seeing strong growth, with 5G technology continuing to be among the top three sets of considerations for buying a new smartphone.
Samsung said its affordability program, Samsung Finance Plus, is seeing strong adoption in Tier 2 and Tier 3 rural markets, driving growth in its smartphone business.
“Samsung finance plus acts as a key strategy to migrate users from 4G to 5G. The program sees monthly transactions to the tune of almost Rs 500 crore. On average, we see 300,000 customers taking advantage of the program every month, 50% of which are new to credit consumers,” Pullan said.