THE YEAR 1995 was all about choices in India. You could choose to buy cosmetics from Revlon, the Cielo sedan from Daewoo, or televisions from Sony or Akai. These were the fruits of liberalisation, with foreign brands flocking to India. It was also the year that Samsung chose to quietly enter India, setting up its first office in Delhi with just two employees. The mission: manufacture colour TVs.

In the mid-1990s, the South Korean giant, too, had to make choices as it sought to establish a foothold in the US and Europe. The search was on for a philosophy needed to build a brand. “The upcoming 21st century marks the Age of Culture, an era in which intellectual assets will determine a company’s worth. No longer is a company selling products. Instead, it has to sell its philosophy and culture,” then Samsung chairman Lee Kun-hee, said in his New Year’s address in 1996, writes Geoffrey Cain in his book Samsung Rising. The chairman declared 1996 the Year of the Design Revolution, signalling a shift towards connecting every device through design, software, content, and user experience.

The same year, Samsung decided to take an early bet on India, establishing not just its first manufacturing facility in Noida, but also its first R&D centre in Bengaluru (then called Bangalore).

Fast forward to now, and India is not just a market for Samsung but a key supplier to its growing global demand. From a modest start, Samsung India Electronics Ltd (SIEL) has grown to achieve a revenue of ₹1,01,589 crore in FY24. “Over the decades, India has not just been a market for us — it has been a partner in innovation, a hub of manufacturing, and a centre for research and development. And we will continue to invest in India,” says J.B. Park, president & CEO, Samsung Southwest Asia.

Today, for most decisions on AI, Samsung holds discussions between its Seoul headquarters and its entities in the US and India. Samsung R&D Institute India-Bangalore (SRI-B) has so far filed 7,500-plus patents across India and globally and is the largest outside Korea, with an estimated 5,000 employees. “The three R&D centres in Bengaluru, Noida, and Delhi, along with the Design Centre in Noida, represent Samsung’s commitment to developing and testing the cutting-edge technologies like AI, 5G, IoT, and human-centric design. These... serve as global hubs, contributing significantly to Samsung’s product ecosystem worldwide,” says Park.

The Smartphone Star

Though TVs and consumer durables have deep roots in Samsung’s journey, its most profitable business is the mobiles division. Samsung has weathered fierce competition to become a brand that is synonymous with innovation and reliability.

Samsung’s smartphone portfolio has evolved from its peak of 10 lines (or ‘series’) in the mid-2010s to just five now. From playing in volumes, Samsung’s smartphone strategy has shifted to value, says Tarun Pathak, research director at Counterpoint Research, given the scope of expanding in volumes has stabilised for the smartphone industry because the upgrade cycle of consumers has lengthened and purchases of second-hand smartphones are growing. “What Samsung has done (is that it has shifted) strategy from volume-based to value-based… starting 2024,” he says.

In the November quarter, Samsung’s market share in terms of volumes fell to 16%. Given the value-based strategy, that’s not a cause for concern. “Never rule out Samsung… It’s too big a brand,” says Navkendar Singh, AVP, IDC, which tracks the market.

Samsung has evolved from winning over consumers with strategic pricing and placement to leveraging its first-mover advantage. While Singh notes that GenAI capabilities aren’t a major driver for smartphone sales in India yet, its share is expected to grow rapidly, reaching 40% and surpassing half a billion shipments by 2027. By Q42024, one in 10 smartphones shipped in India were GenAI-capable, with Samsung’s Galaxy S24 series playing a significant role, says Singh.

samsung galaxy s24 ultra

Samsung and India: Why the South Korean tech giant considers India as more than a market