A Counterpoint Research report states that a drastic fall of 23% is expected to hit Samsung India in the premium smartphone market, and is being attributed to the Galaxy Note 7 fiasco, and strong, timely sales of Apple's new iPhones.
Samsung has been one of the leading sellers of premium smartphones in India, holding a 58% market share of all premium or flagship smartphones being sold in the country. However, a recent report by Counterpoint Research states that the company may expect a drastic drop in its flagship market share in Q4 2016. According to Counterpoint, Samsung’s 58% market share in India’s premium smartphone market may go down to as low as 35% in the last quarter of 2016.
To clarify, the premium segment of smartphones in India is considered for devices priced upward of Rs. 30,000. Two reasons that have contributed to this downfall are the failed Galaxy Note 7, and strong initial sales of the Apple iPhone 7 in India. Samsung had unveiled the Galaxy Note 7 in India, and had even received great initial reviews. However, a flaw in the battery pack of the flagship smartphone led to the two nodes of the cell internally fusing with each other and caused multiple units of the Note 7 to explode across the world. Even after an attempted recall, Samsung could not entirely fix the issue of the exploding Galaxy Note 7, and the device has been eventually discontinued.
Meanwhile, Apple’s new flagship and prime competitor for Samsung’s flagships, the iPhone 7 and 7 Plus, began sales on October 7 in India. The two iPhones have also received positive reviews, and initial sales have been going strong, according to reports. As a result, Counterpoint states that this may lead to Apple taking up nearly 57% of India’s flagship market share, which may lead to significant loss of ground since Samsung’s exponential growth with the Galaxy S6 lineup.
We have reached out to Samsung India regarding this, and await a response. Meanwhile, Samsung will look to focus on consolidating its market presence with the Galaxy S7 and S7 Edge, which still remain among the highest rated smartphones in India. We have also heard rumours surrounding Samsung speeding up a launch of its next generation flagship smartphone, the Samsung Galaxy S8, to make up for lost ground.
Global estimates have projected a $19 billion loss in market revenue, fueled by the Galaxy Note 7 fiasco. This, combined with the loss of the top spot to prime rivals Apple, makes for a slightly difficult phase of operations for Samsung India. It will be interesting to see how Samsung bounces back, with its future flagship smartphones.
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