Country's largest smartphone firm, Samsung, may lose significant market share in the next few months due to the ongoing fiasco over its latest flagship device Galaxy Note7.
According to estimates, the smartphone giant is at risk of losing the top position in the premium handsets market in India during the crucial October-December quarter.
The Korean smartphone maker has been holding on to its number one position in the premium (above Rs 30,000) price segment for a while now.
However, frequent incidences of Galaxy Note7
devices catching fire have impacted the company and its customers' belief in its products.
While, the Seoul-headqurtered company had also come up with a revised version of the device assuring its customers that they would not catch fire.
However, reports of similar incidences with the newer Note7 devices last week failed the company and its customers expectationsl.
had subsequently scrapped its Note7 handsets within two months of its global launch in September.
This decision is in stark contrast to its earlier stance, where the company categorically maintained that it is working to deliver new handsets to Indian consumers. According to sources, the company had started assembling handsets in its Noida
plant in Uttar Pradesh, and was planning to deliver them by third week of October.
But a recall, followed by the abandoning an ongoing project, is expected to dent the Samsung's image and it's sales in the upcoming months, analysts said.
According to Tarun Pathak, a senior analyst at Counterpoint Research, it's sale may fall in the current quarter bringing the market leader down to the fourth position in the premium segment.
During the June quarter, Samsung
held some 49 percent market share. While it's arch rival Apple
had 47 percent of the market in its kitty.
According to industry experts and executives, the timing of the crisis is very crucial. The September-December period is considered to be most important for the sale of consumer electronics and technology products.
Around 30-50 percent of the total yearly sales are earned during this season by many handset firms in the country. Also some 20 percent of Samsung's sales comes from the premium price segment, according to estimates. Since the company does not have any other new product in that segment, it will now have to bank on its previous flagships like the Galaxy S7, S7 edge or the Note5.
However, the failed launch of Note7, which was positioned to counter Apple
iPhone 7, may not be compensated. At a time when festive sales are in full swing, a 25 percent loss in sales would only lead to Samsung
losing its top slot in the market.