Samsung Electronics is rethinking its mobile strategy in India in order to resist Xiaomi whose strong growth in recent years jeopardized the company’s position as the largest phone vendor in the South Asian country, according to local reports citing industry sources which surfaced earlier today. The firm’s Galaxy ON and Galaxy J lineups are hence set to be revised in the near future, with the company supposedly targeting a price range of Rs. 8,000 to Rs. 15,000 ($122-$229) with all of its upcoming offerings. The news suggests that Samsung’s previous decision to stop supplying retailers who accepted subsidies from Xiaomi didn’t yield any success for the company and has actually worsened its position in India. Xiaomi’s Preferred Partner Program in the country was and still is offering subsidies to retailers willing to feature the Chinese phone maker’s products more prominently in their stores, with the initiative being considered as one of the main contributors to the company’s rapid growth in the country.
Apart from planning to introduce a wider variety of entry-level devices and handsets meant to compete in the lower mid-range segment of the market, the South Korean original equipment manufacturer is also said to be planning on revising its local distribution strategy. The shift will most notably affect domestic retailers who are now expected to be offered higher profit margins by Samsung, amounting to an increase of between two and three percentage points, according to recent reports. Additionally, retailers’ credit period could be extended to 45 days from the current 30-35 range as part of the same strategy.
Only three years after entering India, Xiaomi is close to surpassing Samsung in terms of local smartphone shipments, according to most industry trackers, with some analysts even claiming that the two are already level in terms of commercial performance. Samsung’s decision to go against Xiaomi’s top performers in India indicates that the company’s upcoming offerings will target the Redmi 4, Redmi 4A, and Redmi Note 4, with sources claiming that the new Galaxy devices will match their price tags and features. While no specific availability windows have yet been provided by insiders, Samsung India may start announcing new handsets as soon as next month.