Samsung India expects to double its online mobile business in the second half of the current year, driven by new introductions in the festival season combined with customer preference for highend devices.
“In the second half, we are seeing a strong resurgent growth. We expect to double our online business in the second half of 2020 over the second half of 2019,” Asim Warsi, senior VP, Samsung India told The Hindu.
‘Uptake in ASPs’
He added that the company was seeing a “significant uptake” in the average selling prices (ASPs) of mobile phones in the online business, and these may grow in excess of 50% to be in the range of $250-300 (approximately ₹18,000-22,000).
“This is a great indication of how consumers are wanting to move up the value chain and the device capabilities…In fact, we launched M-series just last year, and we expect by the end of 2020, the M series would have grown in excess of $3.5 billion dollars in terms of consumer facing gross merchandise value,” Mr. Warsi added.
The growth in the online business, he said, will be driven by the new smartphone M-51 which comes with a 6.7-inch display, a 7,000-mAh battery, Qualcomm Snapdragon 730 processor, 64MP quad rear camera setup and 32MP front camera and will be unveiled on September 10.
As the company looks to cash in on the expected consumer demand in the festive season, Mr. Warsi said, post lockdown, the M 51 will be the ninth smartphone the company will be launching. In addition, the company has also announced two new tablets, and new products in the wearables segment.
The online business account for about 35-40% of the overall business for the industry and Mr. Warsi believes the trend will remain so for the foreseeable future in India “as electronics and within that mobile and tablets are very high involvement categories and consumers want to experience the new design, hardware, software.”