Samsung Losing Grip Over Indian Market

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Feb 26, 2015

Samsung (SSNLF, Financial), a South Korean multinational, is the largest manufacturer of smart phones in the global market. Samsung is known for its unique models and has picked up the market of smart phones and fueling it strategically with its amazing metal finish big phones. Samsung almost always has superior hardware compared to most of its competitors. This includes faster processors and more RAM.

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Samsung is supposedly losing its grip on the market. It still remains the market leader in terms of sales of its multiple gadgets. Cyber Media Research claims that Samsung is lagging behind in terms of tablet sales in the Indian market. Mainstream IT vendors are taking a lead over Samsung tablets. CMR analysts expressed concern over declining trend in Tablet PC shipments in various consumer segments. The momentum of tablet PC adoption has been fast-paced globally and will continue to do so for another few years. India is the potential market for such gadgets.

While 2015 remains challenging year for first bracket players like: Samsung, Dell (DELL, Financial), Data Wind and Micromax. The pressure to increase tablet sale remains same for Google (GOOG, Financial) as well. This motivates Google to maintain its dominance through Android OS and not let Windows take the lead.

The new report by Cyber Media states, Samsung has occupied 16.5 % of overall shipment in India, Microsoft (MSFT, Financial) and Micromax is running right behind. The research also stated, Samsung started 2014 from 22.3% and by the end of the year it dipped down by 4 %.

Expanding the market leadership

Last year, Samsung expanded its spectrum in core businesses in order to achieve market leadership. They achieved remarkable height in their mobile phone business. They are further strengthening the market power with their unmatched quality, technology and cost. They have also sharpened the core areas and accelerate developing business to maintain their performance as promised. They are in tune with the rapidly changing market environment. They comply with all laws and ethical standards for fair competition. They have partnered with companies worldwide to promote their global competitiveness. In a world of amazing imagination, they claim that the imaginations have the scope to translate in realities. With this Samsung is moving to a new horizon.

Smart devices, making life extraordinary

Worldwide demand for smart phones has gone high and has reached a benchmark of 1.5 billion units. Samsung smart phones accounted for 330 million of those units. It exceeded its targets and has shown an impressive growth. The super strengthened Galaxy phones further enhanced sales for the mass market. In the last two years, they anticipated a rapid growth and intense competition in smart phones and tablets as well. Hence, they successfully enforced market leadership. They also strategize sales of tablets in existing and potential markets.

As we are seeing that Samsung is losing the number of tablet sales, let’s look at few of the reasons behind the reducing numbers. There are several local vendors emerged with similar fablets with extra ordinarily low prices. Samsung slipped to second spot with 12.9 % of the total market capture against 17.9 % compared to the last two years. Local vendors are giving tough competition to Samsung in the retail business. iBall has started to overtake Samsung by its low cost products. This brand is making a lot of efforts to enter local and global markets. Its products are technically up to date and have dynamic looks. Strong performance by local players is impacting Samsung sales at the retail counters. The consumer space will continue to lead by these brands which are not as popular as Samsung. We may see entry of some of the old players, if at all they are ready to make enhanced devices with reduced pricing matrix. Samsung is under immense pressure from local manufacturers in the country, but it seems the battle is not lost yet. Samsung has not yet lost its crown of popular and high demand phones though it is fast losing ground.