Samsung India’s mobile phone business clocked a 27% increase in revenue to over Rs 34,000 crore ($5.3 billion) for the year ended March 2017 the fastest rate in recent times helped by local manufacturing and expansion of its retail channels. The company said it expects a similar pace of growth this financial year.
With mobile phones accounting for about 60% of the overall business, Samsung’s revenue from India for FY17 worked out to be about Rs 57,000 crore, a 20% increase and marginally ahead of the 19% growth of Rs 47,000 crore in 2015-16. The mobile business last year excluded the Note 7 model, which was withdrawn globally and not introduced in India.
Asim Warsi, Samsung India’s senior vice-president for mobile business said “Had the Note 7 been there, the numbers could have been better. Our Note users wait for the next model, which has resulted in high uptake of Note 8 when it came to the market. Pace of revenue growth in the current financial year will be similar to FY17, helped by the Galaxy S8 and Note 8 models, besides the popular J series of mid-range phones. Samsung had a 46% share of the smartphone market by value and 60% in the premium segment, which is for devices priced above Rs 30,000. I wouldn’t comment on any specific competitor but I would reiterate that our approach to the Indian consumer and the market thereof has always been that of serving the market and consumer.”
Samsung’s pace of expansion compares with Apple’s 17% increase to Rs 11,618 crore in the year ended March, its slowest growth in five years. Chinese rival Xiaomi’s revenue surged almost eight-fold, about 700%, to Rs 8,379.3 crore last year.
The South Korean company’s 22.8% share at September end is a hair breadth ahead of Xiaomi’s 22.3%, according to Counterpoint Technology Market Research data. Samsung started 2017 with a 26% share compared with Xiaomi’s 13%. Vivo, Oppo and Lenovo have gained share as well. The top Chinese competitors together hold more than 54% of the market.