With S7 Range, Sam­sung may Trump Ap­ple in In­dia

Re­tail­ers say the lat­est flag­ship has seen mas­sive suc­cess sell­ing 60,000 units within a month of its launch, twice the num­ber of the S6 range

The Economic Times - - Business Of Brands - Gul­veen.Au­lakh @times­group.com

New Delhi: Mo­bile phone re­tail­ers and in­dus­try in­sid­ers re­veal Sam­sung’s Galaxy S7 and Galaxy S7 Edge mod­els have had mas­sive suc­cess in In­dia just af­ter launch, which can po­ten­tially cat­a­pult the South Korean com­pany to the front of the pre­mium de­vices seg­ment, out­pac­ing ri­val and pack leader Ap­ple.

Re­tail chan­nels said Sam­sung has sold over 60,000 S7 mod­els within a month of launch — roughly twice the num­ber of its pre­de­ces­sor S6 in the same time. An­a­lysts said the strong ini­tial de­mand could well put Sam­sung in the lead in the April-June quar­ter in the pre­mium seg­ment, out­pac­ing cur­rent leader Ap­ple.

Cu­per­tino-based Ap­ple, which held the No1spot in the Oc­to­berDe­cem­ber quar­ter, launches a smaller screen ri­val, iPhone SE, on April 8, but that hasn’t gen­er­ated any buzz among con­sumers, re­tail­ers told ET.

“We be­lieve S7 se­ries, in the April-June quar­ter, will help Sam­sung strengthen and oc­cupy pole-po­si­tion in the In­dian pre­mium smart­phone mar­ket, look­ing into the sea­son­al­ity cy­cle of iPhone 6s se­ries and luke­warm re­sponse to new Ap­ple iPhone SE,” said Tarun Pathak, se­nior an­a­lyst at Coun­ter­point Re­search.

The re­search firm’s ini­tial es­ti­mates for sell-in (stocks go­ing to dis­trib­u­tors) for ini­tial two weeks sug­gest a 65% on-year in­crease for Galaxy S7 se­ries in In­dia, com­pared with Galaxy S6 se­ries last year. Ac­cord­ing to some large for­mat re­tail­ers, the de­mand for S7 se­ries has soared since launch, far higher than what they saw for the S6, which was launched last year. Some said their stocks have dried up due to high de­mand. The sales spurt will help Sam­sung ce­ment its po­si­tion against Ap­ple, and as a re­sult, the seg­ment is ex­pect to grow 60% on-year in the sec­ond quar­ter this year, Pathak said.

In­dus­try ex­ec­u­tives aware of the de­mand-sup­ply gap said or­ders for about 20,000 phones es­ti­mates for the ini­tial two weeks since launch sug­gest a 65% in­crease year-on-year for Galaxy S7 se­ries in In­dia, com­pared with the Galaxy S6 se­ries last year

the strong ini­tial de­mand could well put Sam­sung in the lead in the April-June quar­ter in the pre­mium seg­ment

are in the pipe­line, and of the to­tal sales so far, about 80% be­long to the higher quot­ing Galaxy S7 Edge.

“Galaxy S7 and S7 edge are re­ceiv­ing a great re­sponse from our cus­tomers with pre-or­ders which are al­most dou­ble than that of the Galaxy S6 and S6 edge,” said Manu Sharma, VPprod­uct mar­ket­ing at Sam­sung In­dia Elec­tron­ics.

The strong pre-or­der per­for­mance for the new Galaxy S7 and S7 edge il­lus­trates strong cus­tomer ap­petite for our pre­mium smart­phones in In­dia, he added. In­dus­try ex­ec­u­tives,

say Sam­sung has dou­bled shifts at its Noida plant iPhoneSE goes on sale from Apr 8, but re­tail­ers say there is no buzz among con­sumers

who did not wish to be named, said the com­pany was dou­bling shifts at its Noida plant to ramp up sup­plies. Sam­sung didn’t com­ment on this. “De­mand for the Galaxy S7 has been very good and we don’t have enough stock to meet or­ders,” said Sub­hash Chan­dra, man­ag­ing di­rec­tor of Bengaluru-based Sangeetha Mo­biles. Sam­sung launched the Galaxy S7 and Galaxy S7 Edge in In­dia on March 18, priced .₹ 48,900 and .₹ 56,900, re­spec­tively. The com­pany has been bundling or giv­ing sharp dis­counts on VR head­sets along with the de­vices.

In­dus­try ex­ec­u­tives say of the to­tal sales of smart­phones so far, 80% be­long to the higher priced Galaxy S7 Edge

Coun­ter­point Re­search’s

An­a­lysts say

In­dus­try in­sid­ers

Ap­ple’s new

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