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Samsung to reportedly exit low value feature phone business in India

Highlights

  • Samsung is reportedly planning to exit feature phone segment in India
  • Multinational companies are mandated to manufacture phones above Rs 15,000 to avail PLI benefits
  • The demand for feature phones has also dropped in India

Samsung is planning to gradually exit low value feature phone business in India, reports Economic Times. The report citing people familiar with the matter states that there are a number of reasons for Samsung’s plans. 

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Samsung is among the two major MNCs contributing to the Indian government’s production-linked incentive scheme (PLI). “Samsung has spoken to channel partners and said they will exit the India feature phone business in the next few months or by this year’s end,” the ET report added. 

Samsung to exit feature phone segment in India

ET reports that the last batch of feature phones from Samsung for the Indian market are set to be manufactured by its partner Dixon by the end of the year. The South Korean brand will exit the feature phone segment and focus on mid-range, premium mid-range and premium smartphones in the country. Basically, it will aim at launching smartphones above Rs 15,000 price tag. This is also because, under the government’s PLI scheme, the company is mandated to get sops only on the production of phones worth over Rs 15,000 factory price. 

The average selling price of phones is also rising in the Rs 10,000 – Rs 20,000 price bracket resulting in increased traction in terms of volume. 

As per Counterpoint Research, feature phone shipments in India declined by 39 percent year-on-year in the first quarter of this year due to supply chain issues and low demand. Samsung, which was a leader in this segment a few years back, has fallen to third spot with a 12 percent market share. The feature phone market is now led by Itel with 21 percent share closely followed by Lava which has 20 percent share. 

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Viraj Gawde

Viraj loves being in the creative field. Being a tech guy and resident tech advisor for his friends and family, his interest lies in smartphones, laptops and cameras. Passionate about creating art, his forte lies in photography. In his downtime, he loves gaming on his self-built rig and supporting FC Barcelona.