Samsung, the Korean smartphone giant, is set to lose its top billing in the premium-end of the Indian smartphone market to its rival Apple Inc. as the Note 7 fiasco and the strong showing of iPhone 7 are expected to result in a contraction in the company’s market share. The buyers are also getting disconnected from the brand.
The company has been going strong in the premium phone market and with an estimated share of 58% in the Q3 of this calendar year. One of the most critical periods for consumer companies, considering the usual surge in purchases during the festive season.
Samsung’s share may slip to 35%, lowest for the company in many years as Apple gains the maximum with an expected market share of 57%, as per a preliminary forecast made by agency Counterpoint Research.
The fall in Samsung’s market share is also being predicted by other research agencies, as well as important industry players and multi-brand phone sellers, who say there is a “definitive pressure” on Korea headquartered company’s premium phone business, especially when the Note 7 was withdrawn over safety concerns.
“The strong response to iPhone 7 which has sold nearly doubles the numbers in its first week than those achieved by the S6 has only made the matter worse. Apple has surprised the market with the new device, and there is a tremendous pull for the product among buyers,” a top national distributor, who retails brands for both the companies, said while requesting anonymity. “However, the Galaxy S7 Edge has been doing well, as Samsung focuses on pushing the brand aggressively after the Note 7 pullout.”
Manu Sharma- VP for Samsung’s mobile business, said sales have been swift and there is no truth in forecasts predicting a decline in market share of the company. “We don’t agree at all. In fact, we are doing exceedingly well with record sales in mobile business and the festive season has started on a high for us. We continue to sustain our leadership position across all price points.” he said.
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Sameeksha Bhardwaj, From ITvoir News Desk