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Samsung India pipped Apple in the premium segment last year: Cybermedia report

Samsung pipped Apple to claim the no. 1 spot in the premium smartphone segment (Rs 30,000 upwards) for 2015, though the Cupertino-based company could benefit most from the 51% growth expected in 2016 to 5 million unit sales, Cybermedia Research said.

South Korean major Samsung cornered 46% of the premium smartphone market, while Apple got about 44% in the segment, which by volumes made up 3.4% of the entire smartphone market as of 2015 end. Sony was a distant third in this period, with only 3% share.

"As the Indian market moves from a volume game to value market, premium segment becomes significant for the industry where you sell lesser units for higher value," Faisal Kawoosa, lead analyst telecoms at Cybermedia Research (CMR) said.

Apple will benefit most from this growth owing to its strong positioning as a premium segment brand, CMR added.

To mark the next level of growth, mobile handset brands that operate in India need to leverage the premium segment as the units market shrinks, the agency added, underlining the importance of this small segment that brings roughly a quarter of industry revenue.

CMR data supports Counterpoint Research which said Samsung lead with 49% share of the premium market, followed by Apple with 45% share.

CMR analysts said that 53% growth in premium smartphone unit shipments seen in 2015 was largely due to Apple's spectacular rise in volume numbers. iPhone sales growth in India outpaced that of Greater China in the three months ended June, at 93% growth compared to 87% growth. Apple sold about 2 million phones in India in 2015, of which about 800,000 were in the October to December quarter, a period when it outpaced Samsung in the premium segment, as per Counterpoint.

About 3.3 million premium smartphones were sold in India last year, from a total base of 96.4 million smartphones, which will rise to 5 million units this year. Premium phones will make up 3.5%-4% of the smartphone market, a marginal growth, even when the smartphone market itself is expected to grow in double digits.

While CMR said that Apple would benefit most from the strong growth in the country, its latest launch of the iPhone SE which goes on sale from April 8, will contribute to growth but 'will not be the centre-piece for Apple's growth in India.'

Kawoosa said since 5-inch or more sized phones constituted 63% of the premium smartphone shipments in the year, the smaller screen iPhone SE may not find favour among this set of customers. Further, the pricing would not be right, as fairly recent models like iPhone 6 and iPhone 6s would be available for lesser than the iPhone SE launch price of Rs 39,000 for 16 GB.

He added that refurbished iPhones sold in India would also cannibalise on iPhone SE sal es.

The premium segment has been dominated by international brands, while Indian brands have not been able to make a mark here. "While their focus continues to be the affordable price points of smartphones, it is high time that they start foraying into the premium segment as well," Krishna Mukherjee - Analyst Telecoms, CMR, said,

Analysts at the firm said that if and when Indian brands enter the premium segment, it will amplify Android's operating system leadership in this segment. Otherwise, Android OS would face stiff competition from iOS.

Google might also go with a premium brand extension of Android (say Android X), that would essentially focus on increasing the user experience and to primarily compete with Apple iOS.


Source: Samsung India pipped Apple in the premium segment last year: Cybermedia report

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