Samsung India’s sales grow 19% as revenue crosses $7 billion
KOLKATA/MUMBAI: Samsung India grew its sales by 19% during fiscal year to March 2016 to cross the $7 billion revenue mark, but its recent Galaxy Note 7 debacle could slow down the pace of growth in the current fiscal.
Executives say Samsung’s growth rate may taper off during the year due to its decision to pull out its marquee Note 7 and it may lose its leadership in premium smartphone segment to Apple. As per estimates, Samsung would take a potential revenue hit of about Rs 420 crore this quarter alone due to absence of Note 7 in its portfolio.
Samsung last month permanently withdrew Note 7 globally citing consumer safety concerns, pulling the plug on the device completely due to incidents of fire erupting even in the models handed out to replace the earlier recalled devices. The company was yet to launch the handset in India.
As per estimates, around 70-75% sales of Samsung India are generated from smartphones, which has been driving the company’s growth. The company is also the market leader in television, but trails LG in appliances.
The Indian unit of Samsung, world’s second largest tech company, entered India two decades ago but witnessed one of its slowest sales growth during FY2014-15 when it grew low single digit.
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