Samsung announced two new additions—the Galaxy A33 5G and Galaxy A735G— to its 2022 Galaxy A series in India today, March 29. They’re following hot on the heels of the Galaxy A53 5G, Galaxy A23, and Galaxy A13. The South Korean major is eyeing to bag 40% market share in the Rs 20,000-45,000 segment in H1 with the launch of the Galaxy A series 2022 revamp by offering highly differentiated hardware at more accessible price points starting as low as Rs 14,999. Samsung also has a clear-cut software roll-out plan for each of these models with the A73 5G and A53 5G eligible for 4 major OS and 5 years of security updates. (This is 3 major OS and 4 years of security updates for the A33 5G. The A23 and A13, meanwhile, will get 2 major OS and 4 years of security updates.)
In an exclusive interview with Financial Express Online’s Saurabh Singh, Samsung India senior director and head of marketing, Aditya Babbar, takes us through the new product portfolio, while providing key insights on hardware commoditisation, pricing fluctuations, and future plans. Excerpts.
— The pandemic has been challenging but it’s also seen a lot of innovation come out of brands like Samsung. Could you take us through the last two years—products, growth?
We’ve been innovating across the spectrum. Right from the Galaxy Z series, which is a category defining innovation, where we give an iconic design unfolding newer possibility for the consumer, to the Galaxy S where we are really focused on giving premium innovation with a revolutionary camera experience. Our Galaxy A series has been at the core of bringing technology accessible to many or democratising the flagship experience, so to say.
We have done well across the spectrum. If I talk about how Samsung has been doing in the Rs 20,000-45,000 segment, specifically, we are the No.1 brand there. It is on account of very strong 5G launches where 5G has been a huge focus for us.
We have been in India long enough to understand the consumer behavior and something which we have really taken, after the shock of the pandemic, is introducing a new platform we call the Samsung Finance Plus. Today, it is available at more than 50,000 dealers in the country. What’s interesting about it is that we have 100% application approval rate. We have more than 50% new credit consumers who have never got a credit in their life.
We are present across 4200+ cities and we service more than 14,000+ pin codes. So, a strong product foundation with very strong affordability levers and being future ready with 5G have been the pillars for our growth.
— The smartphone market, today, is very commoditised from a hardware perspective—your take?
As a brand, we have been very focused on giving consumers access to technology at a more affordable price. We’re launching five new models—A13, A23, A33 5G, A53 5G, A73 5G between Rs 15,000-45,000. We’re giving 120Hz Super AMOLED in the A73 and A53. The A33 comes with a 90Hz Super AMOLED. We are bringing technology which is not available. We’re the first brand to bring 108MP OIS camera, at a never seen before price. Within Samsung itself, such a setup was reserved to the “Ultra”. Many brands would have done 108MP but 108MP and OIS becomes an uncontested camera proposition. We are bringing OIS to the A23 also at around Rs 20,000. This camera proposition is very differentiated in this commoditised market. All the phones come with “Object Eraser” and “Remaster” camera features we shared on the S22 Ultra launch stage. A33, A53, A73 all have IP67 rating, something which has been reserved for flagships. The most important principle of our Galaxy foundation is privacy. We are bringing privacy to the consumer with a new privacy dashboard where they can really manage the permissions. They can save sensitive documents in Knox-grade security with “Secure Folder”. Lastly, we have decided to give 4-year OS upgrades to A53 and A73 consumers, like the flagship Galaxy S22 series.
— How bullish are you about 5G?
We are very excited about 5G. We now have a total of 16 5G-ready smartphones in our portfolio. We’re very bullish about 5G and we want to be at the forefront of this experience creation in the country.
— Are price fluctuations here to stay?
We keep a very close eye on it, and we keep evolving as the situation evolves so you know we will keep a close eye on the way things are emerging and at the right time, we will take the right decisions.
— The market average selling price (ASP) has gone up—your take?
The market ASP is going up. After the pandemic your phone has become central to everything you do and a need for a good screen and a good camera backed by a great processor and power is at the heart of consumer experience. That’s why today consumers are stretching to really get the best experience which would enable them to stay connected, create and consume like never before.
— Some of your colleagues in the industry are coming on stage and saying smartphone innovation is dead—what’s your take?
We have been unfolding new experiences right from the Fold to Flip [so that is not correct]. The Galaxy S22 Ultra really masters the best of both worlds of S and Note. The A series is bringing 108 OIS camera at a more affordable price. We believe all of this is extremely important for a consumer. Till the time we keep focusing on consumer experience and keep doing what is right for the consumer, they will be there to adopt the new technology.
— What are your expansion plans in 2022?
We want to be the No.1 player in India. Our goal is very, very clear. It will be on account of a great differentiated portfolio, differentiated platforms like Samsung Finance Plus and Care Plus, and the fact that we’re available across the length and breadth of this country being the largest distribution brand. We want to take our market share to 40% in the Rs 20,000-45,000 price point in H1 with the launch of the new A series. We’re very confident with the way we have crafted a plan for the year, we will be delivering a great number and a stronger 2022.
— Will you be open to doing hardware as a subscription service in future?
Today, Samsung gives you credit across a diverse range. We have Bajaj, we have Credit First, we have Samsung Finance, all NBFCs available in the market. We run the biggest upgrade program in the industry where consumers get extremely high bonuses when they trade in their old devices. We have always believed that if there is a consumer need, we need to be there to solve it, and we are the forefront of adopting newer ways for consumer buying. A lot of these things we have already been doing and testing. We always believe in giving consumer the choices and the consumer is the best judge. We will continue to work around that.
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