In the fluctuating market of premium smartphones, Apple is set to replace Samsung as Note 7 fiasco led to loss of face for the Korean tech giant while positive response for Apple’s latest entrant iPhone 7 made it the obvious replacement in the market.
According to reports, following the blasts of Samsung’s note 7 at the time of release of iPhone7 and 7 plus with positive outreach, buyers are expected to disconnect from Samsung resulting in contraction in the company’s market share.
Samsung has been going strong in the premium phone market (Rs. 30,000 and above) with an estimated share of 58% in the third quarter this year, but is expected to witness a marginable decline in the October-December 2016 quarter. This is believed to be most crucial period for consumer companies, considering the usual surge in purchases of festive season.
Report of preliminary forecast made by agency Counterpoint Research suggests that company’s share may slip to 35%, which is lowest for the companies in many years while Apple gains the maximum with an expected market share of 57%.
Samsung has been receiving negative publicity after its notable product Samsung Galaxy Note 7 was reported to blast, not once but many times. The product has been recalled by the company creating mass uproar of dissatisfaction in the customers. Battery issues have been cited as reason for the blasts in various reports.
In the market, fall for Samsung has been predicted by various research agencies along with Key industry players and multi-brand phone sellers, who feel ‘definitive pressure’ after whole Note 7 fiasco.
“The strong response to iPhone7 — sold nearly double the numbers in its first week than those achieved by the S6 — has only made matters worse. Apple has surprised the market with the new device, and there is a tremendous pull for the product among buyers,” a top national distributor, who retails brands for both the companies, told Times of India, while requesting anonymity. “However, the Galaxy S7 Edge has been doing well, as Samsung focuses on pushing the brand aggressively after the Note 7 pullout.”
In response to such expectations, Manu Sharma, VP for Samsung’s mobile business said, “”We don’t agree at all. In fact, we are doing exceedingly well with record sales in mobile business and the festive season has started on a high for us. We continue to sustain our leadership position across all price points.”
“The industry analysts research reports are not based on empirical facts. Such projections by any research agency or analyst, therefore, is incorrect,” he added.
In a report of Times of India, Faisal Kawoosa, telecom industry analyst as Cyber Media Research (CMR), said “Though Note 7 is a high-end premium smartphone, the impact would be across all the segments. The issue is faced with the flagship model of the year that too around the festive season, as a result, customers’ confidence is shaken.”
Other analysts also suggest that confidence is low in brand, as a perception gets built within the market assuming if the issue is with high-end premium model, issues could be with other models too. This will impact the brand reputation and user’s perception.