Samsung is planning to gradually exit the Indian feature phone market to focus on the smartphone business, people familiar with the matter said. According to the Times of India, Samsung has informed channel partners that it will exit the Indian feature phone market in the coming months or by the end of this year.
It is reported that Samsung is one of the applicants for India’s Production Linkage Incentive (PLI) program, and must produce mobile phones with an ex-factory price higher than 15,000 Indian rupees (about 1,302 yuan) to be eligible for the subsidy.
The report pointed out that another reason for Samsung’s exit from the Indian feature phone market may be its decline in market share. Data from market research agency Counterpoint Research shows that due to supply issues, high inventory levels and weak consumer demand due to inflation, India’s feature phones. Shipments fell 39% year-on-year in Q1 2022, with Samsung, the market leader, falling to third place with a 12% share, behind Itel (21%) and Lava (20%)