Samsung India is on track to achieve over Rs 80,000 crore in total smartphone revenue for the current financial year, driven by a robust sales volume growth of about 12%, significantly outpacing the sluggish domestic market, according to sources familiar with the matter.
The company experienced accelerated sales momentum, fueled by a trend towards premiumization, resulting in a 22% increase in average handset selling prices, surpassing the industry average of 17%. Additionally, the proportion of no-cost EMI purchases has risen from 54% to 60% during the year. Furthermore, the tenure for no-cost EMI schemes has been extended to 18 months from the previous 12 months.
While Akshay Rao, Samsung India's General Manager for Mobile Experience Business, declined to officially confirm the revenue performance for FY24, he emphasized the company's strong growth trajectory in terms of value.
"In value terms, our domestic mobile phone sales have witnessed a 12% growth, surpassing the industry's growth rate of 8-10%. Our objective is to sustain growth ahead of the market, driven by a heightened focus on 5G handsets. For instance, in 2023, approximately 60% of our smartphone shipments to India were 5G handsets, a figure we aim to increase to 75% this calendar year," stated Rao.
An industry executive noted that Samsung's mobile phone exports may have slowed down this year due to global recessionary conditions and consumer reluctance to spend in various markets. This situation has compelled many handset manufacturers, including Samsung, to adjust their production strategies.
