Phone business

Report – The Mobile Indian

Samsung is one of the biggest smartphone makers in India not only in the mid-range, budget and flagship segments but also in the feature phone space. However, it looks like the brand is now considering phasing out of the high-volume but low-value feature phone business in India.

A report from Economic Times suggests that Samsung will soon exit the feature phone business in India to focus on other segments. The final batch of feature phones for India are expected to be made by its contract manufacturing partner Dixon by December, people familiar with the matter told ET.

The report adds that Samsung is among the top two multinational contributors to the government’s Production Linked Incentives (PLI) scheme. However, it is mandatory to obtain SOPs only on the production of handsets worth more than Rs 15,000 factory price. “Samsung has spoken to channel partners and said they will exit the feature phone market in India within the next few months or by the end of this year,” one of the people told the publication.

Samsung seems to be doing well in other price segments in India and it looks like the Korean manufacturer has decided to focus on mid-range, upper mid-range or high-end and high-end smartphones.

Regarding the feature phone scenario in India, the country witnessed a 39% YoY drop in feature phone shipments in the first quarter of 2022, the reason being shortage of supply, high inventory levels and a decline in demand due to high retail. inflation.

With Itel leading the segment with 21% market share, it is followed by Lava with 20% market share and then Samsung in third place with 12% share, according to data from Counterpoint Research. Samsung’s exit will give its competitors, such as Itel, Nokia and Lava, a chance to gain significant market share.