Samsung has to work on a war footing as Apple is eating its market share in India

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Following its Galaxy Note7 debacle, Samsung may lose the top spot in Indian market share in the premium-end segment. The Galaxy Note7 fiasco is proving to be Apple’s gain as it might become numero uno in the premium segment (Rs 30,000 and above).

As per industry experts, Samsung’s Q3 results, which is the most crucial report for consumer companies, may sharply decline and may slip to 35%, lowest for Samsung.

Apple is going to eat Samsung’s pie as it is predicted that the iPhone maker will gain the market share of 57%.

"The strong response to iPhone7 - sold nearly double the numbers in its first week than those achieved by the S6 - has only made matters 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, told TOI.

To damage control, Samsung is banking on Galaxy S7 and Galaxy S7 Edge.

Manu Sharma, VP for Samsung's mobile business, told TOI, “Sales have been brisk and there is no truth in forecasts predicting a decline in market share. 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.”

However, market experts on the flip side.

Neil Shah, director (devices & ecosystems) at Counterpoint Research, said, “Samsung was estimated to sell a quarter million Note 7 in India in 2016. We estimate the total impact on its top line would be close to Rs 700 crore.”

Jaipal Singh, market analyst at IDC India, said Samsung's brand reputation will be impacted. "It will lose out a bit in the stronghold that S7 Edge has created in the premium segment. But mostly, it will impact brand reputation and user's perception.”

(Image: Thinkstock)
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