Samsung India heading for record sales of mobile phones

samsung-india-and-revenue-concerns
Samsung India today said it’s heading for record sales of mobile phones this year in the country.

The statement came in the wake of an analyst report that said the issues connecting with Galaxy Note 7 recall will impact the smartphone business revenue and marketshare of Samsung in India.

The Korean consumer electronics giant refuted the analyst report from CyberMedia Research that said the Galaxy Note 7 debacle may hit Samsung India’s smartphone shipments target by 14 percent and revenues by Rs 6,500 crore in India.

A media statement from Samsung did not mention anything about revenue of its phone business in India.

“The festive season has started for Samsung on a high and we have strong support and trust of our customers. We are appalled by the incorrect reporting of company’s financials based on reports by various research agencies,” said Samsung.

The company said the reports covered in some news articles quote different revenue loss estimates for Samsung India. These research reports are not based on empirical facts. Such projections by any research agency or analyst, therefore, is incorrect.

Samsung has clarified that it has not sold Galaxy Note7 in India.

ALSO READ: Galaxy Note 7 debacle to hit Samsung India’s smartphone revenue

CMR said Samsung India’s smartphone shipments target may fall short of 4 million units than its estimated shipments for the calendar year 2016, due to Galaxy Note7 battery issue that led to its recall and later halt of production worldwide.
samsung-revenue-forecast-for-indiaAccording to the research firm, this translates to Rs 6,457 crore in terms of revenues for the Korean company.  As per projected growth, Samsung was expected to touch revenues of Rs 45,446 crore in 2016, an increase of 46 percent compared to previous calendar year. Following the Note 7 issue, it can earn revenues of Rs 38,989 crore, which means a growth of 25 percent in revenues in 2016.

Samsung, however, will continue to maintain leadership in the smartphone segment in India, but its market share will shrink by 4.2 percent to settle at around 25.5 percent instead of estimated 29.7 percent, said CMR.

IDC India says Samsung continues to lead the smartphone market with 28.5 percent share in Q2 2016, clocking 5.7 percent growth from the previous quarter. Alongside the newly launched J series (2016 versions), the J series range continue to drive the maximum volumes for Samsung.
smartphone-sales-forecast-by-idcApart from Reliance Jio (Lyf), other Indian vendors were unable to hold on to their market share in Q2 2016.

Since global vendors except Samsung did not manage to sustain market share, China based phone vendors increased presence and share across all Tiers even with their mid segment ASPs (ranging from $150-$200) on the back of strong distribution channel, better channel schemes and huge promoter programs.

Micromax maintains second position in Q2 2016 with 11.9 percent share. It regained share in the less than $100 price segment to be at the top position on the back of newly launched Bolt & Canvas Spark series, but is facing stiff competition from Lyf Flame series.

IDC in September 2016 said worldwide smartphone shipments are expected to reach 1.46 billion units with a year-over-year growth rate of 1.6 percent in 2016 against 10.4 percent growth in 2015. The slowdown is due to the decline expected in developed regions in 2016, while emerging markets continue with positive growth.

Baburajan K
[email protected]