Priyanka Tiwari
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Samsung is placing a major bet on India's non-metro markets, particularly Tier 2, Tier 3, and rural areas, as it aims to outpace the industry’s value expansion in 2025. With the smartphone market increasingly leaning towards premiumization, Samsung is making strides in affordability initiatives and strengthening its A-Series lineup to cater to the growing demand in these regions.
Aditya Babbar Discusses Growth in Value
Aditya Babbar, Vice President of MX Business at Samsung India, explained that the market is expanding in healthy double digits in terms of value. “The market in terms of value is growing in healthy double digits. And in 2025, it will continue to grow at a very healthy double-digit rate,” Babbar stated. While shipment growth might stabilize, value growth is expected to be significantly higher.
In 2024, Samsung surpassed the industry’s value growth and intends to maintain this momentum in 2025 with new launches across a variety of price segments.
Targeting Tier 2, Tier 3, and Rural Markets
Samsung is doubling down on its affordability initiatives to ensure that its products are accessible to a broader range of consumers. This includes offering Samsung Finance for multiple purchasing options, with a particular focus on Tier 2, Tier 3, and rural markets. “The Tier 2 and below, as well as rural parts of the market, are growing much faster in terms of value. A-Series is experiencing much higher demand from these parts of the country,” Babbar noted.
In these growing markets, the A-Series is expected to play a key role in driving both volume and value market share in 2025. Samsung’s goal is to sell 11 million A-Series smartphones in India next year.
A-Series Growth and Goals for 2025
The A-Series has already gained significant traction, with 89 million users globally, making it one of the largest smartphone series. In 2024, the A35 emerged as the best-selling phone in the Rs 25,000–Rs 35,000 price range, while the A55 led in the Rs 35,000–Rs 50,000 category. Samsung’s ambitious goal for 2025 is to cross 100 million A-Series users, adding over 11 million new customers.
Samsung's Position in the Indian Smartphone Market
According to IDC, Samsung held the second-largest smartphone brand position in India in 2024, although its volume market share decreased to 13.2% from 17% in 2023. Despite this dip, Samsung saw growth in the premium segment ($600–$800), which grew by 34.9%.
Challenges with Offline Retailers and Market Concerns
Samsung has faced certain challenges in the market, including differential pricing between online and offline channels, lower margins compared to Chinese competitors, and occasional stock availability issues for popular models. Babbar acknowledged these concerns, saying, “We are keeping our ears on the ground—whether it is for consumers or the channel—to learn and do the right thing. Most of the people we work with are fairly happy with the way they are growing and the way they are continuing to co-work with us for the consumer.”
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