Samsung calls India key strategic market, upbeat on growth prospects

Business Standard

a day ago

Consumer electronics major Samsung sees India as a "key strategic market" with "immense potential" and stays optimistic about its growth trajectory, a top company official said.
The comment comes against the backdrop of global trade and tariff turmoil, and the latest US salvo of 25 per cent tariff imposition on India.
India is not just a strategic market for Samsung but a key pillar in its global future, said JB Park, President and CEO, Samsung Southwest Asia, adding the South Korean Chaebol will "continue to invest in innovation, manufacturing, and local value addition, aligning with India's vision of a self-reliant economy." Samsung's long-term commitment to India remains unwavering, as it sees the country as a cornerstone of its global strategy, he said.
Samsung views India as a key strategic market with immense potential. The company remains optimistic about India's growth trajectory, driven by government initiatives like Make in India, Digital India, and a robust digital ecosystem. Samsung continues to invest in innovation, manufacturing, and local value addition, aligning with India's vision of a self-reliant economy," said Park.
The company, which reported revenue of over Rs 1 lakh crore in FY24 from the Indian market, and operates here with two manufacturing plants, three R&D centres, and one design centre, India plays a crucial role, catering to both local demand and global markets.
Samsung, which recently introduced the seventh edition of its flagship foldable smartphone Galaxy Z series, plans to locally manufacture in India at its Noida plant.
According to Park, "These new phones will be manufactured at our Noida factory".
Acknowledging the role of India in its development, Park, at a media roundtable last month in New York ahead of the launch, had said engineers from Samsung India's Bengaluru R&D facility have contributed significantly to the development of the new devices.
Samsung, which had priced its Galaxy Z Fold7 starting from Rs 1.75 lakh to Rs 2.11 lakh, had last week said it is witnessing an "unprecedented demand" for the flagship foldable phone as it has "stocked out in select markets".
The company has received over 2.1 lakh pre-orders for Galaxy Z Fold7, Galaxy ZFlip7 and Galaxy Z Flip7 FE and is taking necessary steps at its manufacturing factory in Noida to meet the demand.
Over the reparability factors of the Fold and the Flip series, Park said the company has found a solution on the cost side.
"Of course, mechanics is something that we are always striving to innovate... repair or the cost of repair is a way that we look into how to reduce the consumer burden. And we have found many ways to improve that, help them, and lessen the cost. So we have a solution for that," he said.
When asked about Samsung's evolution journey on foldables, Park said the concept is to make it smaller.
" I remember when we had a 5-inch smartphone, we thought it was the biggest, immersive. Now, it's like 6.8-inch and it's becoming bigger and bigger it doesn't go into your pocket, it's hard to hold. So we started thinking about how we can make it a small form factor. That's when we flipped it or folded it. I think it's a trend that other brands are following," he said.
During the Galaxy Unpacked event last month, Samsung also announced the company is now working on a tri-fold phone, which it plans to launch by the end of this year.
When asked if the new foldable phone will help in market gains for Samsung, Park replied, "To win the heart of the consumer, durability can be one thing, design and price (could be other things)." "It's not that one brand can dominate the whole market. I think having competition enables Samsung to always innovate and look for different technology that does not exist today," he said.
Samsung is also reducing its SKUs in the Indian market as part of its optimisation strategy and to increase efficiency.
"When I first came to India in 2012, there were like 70 brands - feature phone brands, local brands, and Chinese, Korean, Japanese and Scandinavian brands. I thought, how are these 70 brands competing with each other? And if I look at our portfolio, I have more than 50 phones with a Rs 100 to Rs 300 gap between two models. If I dropped the price on one model, it was like a domino. I had to drop prices on the entire portfolio," he said.
Without referring to the name of rivals, he said there is a mother company that has like five different brands and another US company that plays very strongly in the flagships.
"So, I had to fight with multiple A, M and F series across online, offline, tier two, three, and four towns. If I battle across the entire front line, I cannot win. I knew that I had to reduce the SKUs. I have to look at efficiency, concentration, and where to fight. And that's when you see optimisation," he said.
In the Indian market, Samsung competes with the US-based phone maker Apple in the super premium category, priced over USD 1,000.
According to IDC, the Indian smartphone market is led by Vivo, which had 19.7 per cent market share in Q1 2025. Samsung was number two with 16.4 per cent shipments.
(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)