Samsung Faces Off Against China in India's Smartphone Market

High-End Flagship Smartphone Production in India
Aiming to Reclaim 1st Place Ahead of Xiaomi

[Asia Economy Reporter Kwon Haeyoung] Samsung Electronics is producing high-end flagship smartphones in the Indian smartphone market. Samsung, which is closely chasing China, the number one in the blue ocean Indian smartphone market, plans to regain the lead by expanding sales of high-end products.

According to Bloomberg on the 6th (local time), Samsung has started production of the latest flagship smartphones, Galaxy Fold, Galaxy Flip, and Galaxy S23, at its factory in India. Raju Pullan, head of Samsung India’s mobile business division, said, "Samsung India used to import premium Flip and Fold smartphones, but now assembles all smartphones locally," adding, "This is based on our strong commitment to the growing Indian market."

India is the world’s second-largest smartphone market after China. According to market research firm Canalys, Xiaomi held a 20% market share in the Indian smartphone market last year, ranking first, with Samsung following closely at 19%. Samsung held the undisputed top spot from 2011 to 2017 but lost the lead from 2018 due to the low-price offensive by Chinese smartphone manufacturers including Xiaomi. Chinese smartphone makers have rapidly increased their market share in India by offering lower prices, larger batteries, and marketing targeting cricket and Bollywood.

Samsung is also counterattacking and gradually expanding its smartphone market base in India. After the launch of the Galaxy S23 last week, it received 140,000 orders in the Indian market within 24 hours. This is double the first-day sales of the previous model, with sales reportedly reaching 14 billion rupees (169 million dollars). Targeting price-sensitive Indian consumers, Samsung sold smartphones worth 1 billion dollars last year through low-priced smartphones and credit card discount promotions.

Samsung plans to expand smartphone sales stores and further drive marketing efforts in the Indian market. Tae-moon Roh, President of Samsung Electronics’ MX Division, said in an interview with Bloomberg last month, "We will establish a mobile research center in India," adding, "India is an important market that we aim to reclaim."