India is a potential market for mobile companies, with over a billion wireless connections and a little over 450 million handsets. According to the India edition of Deloitte’s 2022 Global TMT report, India will have a billion smartphone users by 2026 when 5G services are pushed out. The rollout of 5G services, as well as the adoption of e-learning and fintech platforms in rural India, are likely to boost this demand.
In 2021, India’s smartphone market revenue exceeded $38 billion, a 27% increase. In the same year, Samsung achieved its highest-ever retail ASP with a 28% share, which made it a clear leader in the mid-segment price range. Thus, Samsung is now expanding its three-year-old consumer lending scheme in India, intending to retain and maximize smartphone sales in the world’s second-largest smartphone market.
Existing Financing Options of Samsung
Through the Samsung Finance+ credit service, which allows users to pay for a smartphone in installments, the South Korean tech giant is recording monthly sales of 5 billion rupees ($65.8 million). Samsung Finance Plus was created in India at the Samsung R&D Institute in Bangalore, and it is backed by DMI Finance. This service lends money to about three lakh clients each month to help them purchase Galaxy smartphones.
According to Raju Pullan, Head of Samsung’s mobile division in India, the Samsung phone loan facility has proven successful with price-conscious Indian consumers. With an average of 300,000 loan applications handled each month, the loan plan generated roughly 30 billion rupees in 2021. The company expects its average lending for this year to reach about Rs 600 crore per month, banking on its rapid territorial expansion schemes for this service.
Samsung’s New Strategy
To reclaim market share, Seoul-headquartered Samsung has introduced budget devices and improved its online marketing reach with millennials. The brand aims to sell five new A-series smartphones this year, three of which will incorporate 5G wireless connectivity, a priority for the South Korean electronics manufacturer, to position India as one of the largest 5G players.
Samsung Mobiles is eager to capitalize on the emerging opportunity in the Indian smartphone industry as it transitions from 4G to 5G soon. The Korean electronics giant intends to grow its market share from 25% to 40% by the end of the year, with a special focus on the mid-segment in terms of pricing.
The company focuses on the market’s 20,000-45,000 rupee smartphone segment, which is India’s fastest, largest, and most successful growing segment. It depicts a group of potential consumers who want to upgrade their phone service to the next level. Since the launch, Samsung has also scaled up its loan service availability to over 50,000 stores in over 14,000 pin codes.
Upcoming Launches and Plans of Samsung in 2022
Samsung revealed five new Galaxy A models, including the Galaxy A13 and A23 with 4G technology and the Galaxy A33, A53, and A73 with 5G technology. The new devices are priced between Rs 15,999 and Rs 35,999, except for the A73 5G, which is likely to cost over Rs 45,000. The Galaxy A73 5G is a high-end smartphone in the series with a 108-megapixel camera with Optical Image Stabilization (OIS), IP67 water and dust resistance, and a Snapdragon 778G 5G processor.
According to Aditya Babbar, Samsung India’s Senior Director and Head of Marketing, the company aspires to provide a better overall experience rather than focusing on specific factors such as hardware characteristics. As a result, they will offer a differentiated experience, from assisting buyers with simple Samsung phone loan alternatives to giving extended software upgrades on mobile devices.
So, what does Samsung have planned this time? For starters, Samsung promises to deliver security upgrades for at least four years. Not only that, but Samsung also claims to be providing at least two Android updates. This means that most Samsung smartphones will receive all of the latest Android features or OneUI features for the next two years. Thanks to four years of security updates, the devices will also be safe to use for another two years.
The new financing strategies and upcoming launches of Samsung prove that their 5G handsets will easily endure till 5G connectivity is widely available in India’s big towns. So, it is not a bad idea to upgrade to the latest 5G technology with a Samsung phone loan today.
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