Premiumisation, 5G focus will boost revenue growth: Samsung – Technology News – Life Changer

Premiumisation, 5G focus will boost revenue growth: Samsung – Technology News

316

[ad_1]

Samsung on Thursday said it is confident that the trend of consumers moving towards premium products as well as focus on 5G phones will continue to drive strong revenue growth for the company this year.

The comment comes at a time when the overall consumer demand for smartphones remains weak. Basis this, there is a pile up of inventory across channels, thereby leading to weak shipments to dealers/retailers for the smartphone companies.

“We will be cautiously optimistic on the shipment numbers, but we are very optimistic on the overall revenue growth,” Raju Pullan, senior vice president of mobile business at Samsung India, told FE.

While Pullan did not share any growth targets, he added, “we will be sensitive to driving category growths by premiumisation across price points. It’s a huge operating market. We will be ahead of the industry published growths on revenue”.

In FY23, Samsung’s revenue from mobile phone business was at Rs 70,292 crore, a growth of 27% year-on-year. In FY24, the company is expected to see another strong revenue growth, according to analysts. One of the reasons for that is an increase in average selling price (ASP) of smartphones, especially owing to an increase in share of the premium segment smartphones (above Rs 30,000).

According to market analyst firm IDC, the overall ASP for the mobile phone industry hit a record of $255 (around Rs 20,000), up 14% YoY in 2023. Samsung, which is the market leader with an 18% market share, touched a record high smartphone ASP of $338 (Rs 27,000) in 2023.

“We are available at every price point. This helps to upgrade the consumer. We have seen consumers move directly to 4G and even 5G from 2G as well, and that’s at the back of affordability,” Pullan said.

Currently, 5G phones contribute about 61% of the overall smartphone portfolio of Samsung, which is higher than the industry average of 52%. “We will have segment leaders in every category and that will be led by our 5G first approach,” Pullan said, adding that consumers are upgrading because of flagship features and technology at affordable rates, long tenure EMIs, and easy finance schemes.

On Thursday, Samsung launched Galaxy A35 5G and A55 5G phones with multiple memory variants starting Rs 27,999, and going up to Rs 42,999. Among key features, the company added AI-enhanced camera capabilities, and Samsung Knox Vault- which is a feature offering protection against software and hardware attacks. With the launch, the company has about 20 smartphone models active in the market.

Currently, Samsung has a 31% market share in terms of volume, in the Rs 30,000-50,000 segment.

When asked about any increase in smartphone prices owing to increase in memory chip prices, Pullan said, “we will be cognizant of the changing market environment. We will provide value to the consumer as we’ve always focused on affordability. So these variable environments don’t make a difference to consumers who would like affordable tech,” Pullan said.

According to Counterpoint, India’s smartphone shipments remained flat in 2023 at 152 million units. The first half of the year was challenging due to ongoing macroeconomic turbulence leading to low demand and an inventory build-up. The market started recovering in the second half of the year supported by 5G upgrades and better-than-expected festive sales, according to analysts. 5G smartphone shipment share crossed 52% in 2023, with a 66% year-on-year growth.

[ad_2]

Source link

Loading

Post Views: 984

316 thoughts on “Premiumisation, 5G focus will boost revenue growth: Samsung – Technology News”

  7. cross border pharmacy canada [url=http://canadapharmast.com/#]canada drugs online[/url] best canadian pharmacy online

    Reply

  34. mexico pharmacy [url=https://mexicandeliverypharma.online/#]mexican mail order pharmacies[/url] mexican pharmaceuticals online

    Reply

  54. mexican rx online [url=https://mexicandeliverypharma.online/#]п»їbest mexican online pharmacies[/url] buying prescription drugs in mexico online

    Reply

  282. I absolutely love your website.. Very nice colors & theme.
    Did you build this web site yourself? Please reply back as I’m trying to create
    my own website and would love to find out where you got this from or exactly what the theme is called.
    Many thanks!

    Reply

  286. Great blog here! Also your site loads up very fast!
    What web host are you using? Can I get your affiliate link to your host?
    I wish my website loaded up as fast as yours lol

    Reply

  292. Hey! I could have sworn I’ve been to this blog before but after browsing through some of the
    post I realized it’s new to me. Nonetheless, I’m definitely delighted I found it and I’ll be book-marking and checking back frequently!

    Reply

  293. Your style is unique in comparison to other folks I’ve
    read stuff from. Thanks for posting when you’ve got the opportunity, Guess I’ll just bookmark this web
    site.

    Reply

  294. Appreciating the time and effort you put into your blog and in depth
    information you present. It’s awesome to come across a blog every once in a while that isn’t the same out of date rehashed material.

    Fantastic read! I’ve saved your site and I’m adding your RSS feeds to my Google account.

    Reply

  296. I’m now not certain where you’re getting your information, however good topic.

    I must spend a while learning more or working out more.
    Thanks for magnificent info I used to be looking for this information for my mission.

    Reply

  297. My brother suggested I would possibly like
    this website. He was totally right. This post actually made my day.
    You can not consider simply how a lot time I had spent
    for this information! Thanks!

    Reply

  299. hello there and thank you for your info – I’ve certainly picked up anything new from right here.
    I did however expertise several technical issues using this
    website, as I experienced to reload the web site a lot of times previous to I could get it
    to load correctly. I had been wondering if your web hosting is OK?
    Not that I am complaining, but slow loading instances
    times will often affect your placement in google and can damage your high-quality score if ads and marketing with Adwords.
    Anyway I am adding this RSS to my e-mail and could look out for much
    more of your respective exciting content. Make sure you update this again very soon.

    Reply

  302. I’m not sure exactly why but this blog is loading incredibly slow for me.
    Is anyone else having this problem or is it a issue on my end?
    I’ll check back later and see if the problem still exists.

    Reply

  304. I think this is one of the such a lot vital info for me.
    And i am satisfied reading your article. However wanna statement on few common issues, The website
    style is perfect, the articles is really nice : D. Excellent
    activity, cheers

    Reply

  305. Viagra 100mg prix [url=http://vgrsansordonnance.com/#]Viagra generique en pharmacie[/url] Viagra homme prix en pharmacie sans ordonnance

    Reply

  306. Great post. I was checking continuously this blog
    and I am impressed! Extremely useful information specifically the ultimate section 🙂 I deal with such info much.
    I was looking for this particular information for a
    long time. Thanks and good luck.

    Reply

  308. Howdy! I simply would like to offer you a huge thumbs up for the great information you have here on this post.
    I will be coming back to your site for more soon.

    Reply

  316. Hi there! Do you know if they make any plugins to assist with Search Engine Optimization? I’m trying to get my blog to rank for some
    targeted keywords but I’m not seeing very good success. If you know of any please share.

    Kudos! I saw similar text here: Eco wool

    Reply

Leave a Reply

Your email address will not be published. Required fields are marked *

Related Articles

From Omnichannel POS Systems to AI-Powered Chatbots, Technology is the Future of the Restaurant Industry |
From Omnichannel POS Systems to AI-Powered Chatbots, Technology is the Future of the Restaurant Industry |
[ad_1] The adoption of omnichannel POS platforms has transformed how restaurants operate. Instead of just…
Read More
Writers Guild of Canada Overwhelmingly Votes to Authorize Strike Over AI, Fair Pay
Writers Guild of Canada Overwhelmingly Votes to Authorize Strike Over AI, Fair Pay
[ad_1] THR Illustration / Adobe Stock Canadian writers appear ready to strike as they hold…
Read More
Congo questions Apple over knowledge of conflict minerals in its supply chain | WGN Radio 720
Congo questions Apple over knowledge of conflict minerals in its supply chain | WGN Radio 720
[ad_1] By GERALD IMRAY, Associated Press 42 mins ago FILE – A Congolese miner sifts…
Read More