Samsung says inflation has no impact on phone sales; Record 50,000 Galaxy Z Fold 4, Galaxy Z Flip 4 bookings

Samsung Says No Impact of Inflation on Phone Sales; Records 50,000 Galaxy Z Fold 4, Galaxy Z Flip 4 Bookings

South Korean electronics giant Samsung feels that the ongoing concerns over inflation are unlikely to dampen demand for mobile phones in India, saying it has seen healthy double-digit growth in sales this year. The company has seen record pre-bookings by 50,000 customers for its recently launched Samsung Galaxy Z Fold 4 and Galaxy Z Flip 4 phones, which are priced between Rs. 90,000 – Rs. 1.5 lakh within 24 hours, Aditya Babbar, head of product marketing told PTI.

“All our internal projections suggest that the market will grow in good numbers and we will overtake two times,” Babbar told PTI. Volume growth target for 2022.

In the premium category, Samsung is seeing a 1.5x increase in sales as compared to the previous year, Babbar said, but declined to disclose the units sold in 2021.

High inflation, along with other problems such as slowdown in rural demand reported by consumer goods companies and high unemployment, have raised concerns over the overall consumption story that drives the economy.

Babbar told PTI that offering easy finance is one of the biggest strategies adopted by the brand to ensure that the aspirations of the consumers are met. He said tie-ups with non-bank lenders have ensured that the average selling price at outlets goes up as financing drives many people to buy more expensive phones.

Asked about the loan book stress created due to repayment rates and sale of mobile phones, he told PTI that it has the best record in the industry.

He added that Samsung has launched a total of 16 devices across different customer segments so far this year, making it the highest number of new devices in a year.

Babbar told PTI that the recently launched Samsung Galaxy Z Fold 4 and Galaxy Z Flip 4 will be stocked across 10,000 stores and will be available at 12,000 points to help in overall sales.

Babbar pointed to the Fold and Flip phone models, saying it is also keen to include users from rival brands in its ecosystem, where pre-bookings lead to huge discounts on items like watches and buds.

Babbar said that the company first launched the flip and fold category in 2019 and is now growing 16 times in the category which is now becoming mainstream.


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