Samsung Electronics Co Ltd (KRX:005935)(OTCMKTS:SSNLF)’s rise in India worries Apple (AAPL)

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Samsung Electronics Co Ltd (KRX:005935)(OTCMKTS:SSNLF)’s share of the Indian smartphone market rose to 30% at the end of Feb. 2016 up from 28.6% at the end of 4Q2015. Apple Inc. (NASDAQ:AAPL)’s market share in India at the end of 4Q was a paltry 2%, according to data from research firm Counterpoint. What explains Samsung’s resurgence?

Samsung’s strategy

It turns out Samsung Electronics Co Ltd (KRX:005935)(OTCMKTS:SSNLF) has figured out how to make phones that resonate with Indian consumers. For example, the company’s latest lineup for boast safety and connectivity features that are suitable of the Indian market. Samsung recently launched in India a model of smartphones that comes with a safety feature called “S bike”. The feature targets the community of bike riders in India. When the feature is activated, it notifies the caller that the owner of the phone they are calling is riding and will not answer their call. It is a great way to eliminate distraction for riders so that they can focus on the road to ensure their safety and that of their passengers.

Another feature that Samsung Electronics Co Ltd (KRX:005935)(OTCMKTS:SSNLF) has built into its smartphones targeting the Indian market is for controlling data and battery usage. The phones for the Indian market are coming with features that can be activated so that less data is used when connecting to the Internet. The other feature can be activated to ensure that the phone remains a live longer when charging is not available.

Low-cost handsets

Samsung’s other scheme to regain lead in India’s smartphone market is targeting the mid-to-low-end market segments. The company is coming up with cheaper handsets that still feature premium designs. It has been explained that Samsung is able to strike the balance by trimming production costs.

Apple is also vying for the Indian smartphone market where its position is currently diminished at just 2%. It is battling Samsung in the premium market and homegrown vendors in the low-income segment.

Neha Gupta

Neha Gupta has been in the financial space for over six years now. Gupta earned her MBA degree from Symbiosis Centre of Distance Learning in 2009 and her passion for finance led her to pursue Chartered Financial Analyst (CFA) course. She has successfully completed Level II of her CFA. She is a veteran in article writing, which is depicted in her numerous pieces published on SeekingAlpha, Nextiphonenews, InsiderMonkey, MarketWatch, and Techinsider. Her crisp and eloquent writing finds its best place in Researchcows, where emphasis is given on developing rich content for various websites, products, business plans, trainings, and book writing.

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