Samsung Goes To War...

Surajeet Dasgupta/Business Standard

South Korean mobile giant Samsung announced price cuts of 15 to 35 per cent on its flagship S24 range of mobile phones, launched in January.

The discounted models will be available exclusively on Flipkart starting September 26, as Samsung takes on Apples iPhone 16 range, which went on sale this past Friday.

This move follows Apple Incs strategy of narrowing the price gap between the iPhone 16 Pro Max and Samsungs top-tier S24 Ultra.

The price differential has now halved to Rs 14,900 compared to previous models in the same series. Apples iPhone 16 directly competes with Samsungs base S24 phone, as both are priced similarly.

Moreover, Apple Inc is offering exchange deals on all iPhone 16 models, along with cash discounts on credit cards of up to Rs 45,000. In contrast, Samsungs  trade ins are up to Rs 45,000 at the top end, experts say.   

Samsungs Flipkart offer, which runs for a week, will bring down the prices of all S24 models below those of the iPhone 16. For instance, the base S24 will be Rs 20,000 cheaper than the iPhone 16, and the S24 Ultra will be Rs 34,901 less expensive. For both, the festival season accounts for about 23 per cent of annual sales.

According to Counterpoint Research, overall smartphone sales are expected to grow by 3 to 4 per cent this year, but the high-end market (phones priced above Rs 45,000) is projected to grow by 15 to 16 per cent. Apple and Samsung dominate this segment, accounting for 90 per cent of the sales, with Apple capturing two-thirds of the market and Samsung holding most of the remainder.

Samsungs focus is on protecting its turf among Android users in the Rs 30,000 to Rs 45,000 market segment, where it holds a 40 to 45 per cent share. Apple has minimal or no presence in this range. Samsung wants to ensure that users looking to upgrade dont switch from Android to Apples iOS platform. That's why Samsung offers a range of products, from the S24 to foldable phones, to keep them within the Android ecosystem, says Tarun Pathak, research director at Counterpoint Research.

Six out of 10 models of Samsung phones are bought through finance schemes.  

On the ground, iPhone stocks -- especially the higher-end iPhone 16 Pro and Pro Max -- are running low on platforms like Flipkart and Reliance Digital. 

Retailers like Unicorn, one of Apple's largest resellers, report that only the iPhone 16 and iPhone 16 Plus are in stock.

A senior executive from a phone retail company said, "E-commerce players are receiving very limited stock of the new phones; 90 to 95 per cent of inventory until the festival season is being distributed through Apple's extensive retail and point-of-sale network across the country."

Analysts ascribe the shortage of Pro and Pro Max models to the fact that they are currently being imported. It will take a few months before they are assembled domestically.

Meanwhile, the prices of these models have already been adjusted downwards. In contrast, the iPhone 16 and iPhone 16 Plus, which are made in India, do not face supply shortages.