So far USA used to be the country where you can get the cheapest smartphones and other electronic products. However, things are changing now. Recently Samsung launched its Samsung Galaxy S10 lite for $720 in the USA and Rs 39,999 ($558) in India. You will pay almost 200 bucks more in the USA than in India. Why is that so? Let’s understand from Samsung’s point of view.
Oneplus has emerged as a huge brand for the young generation in India and not to forget that more than 60 percent of the Indian population is below 35. You will see either Xioami or a Oneplus phone among most of the young people in India.
These two companies are providing the best value for money phones which is obviously going to attract consumers. However, it is not like this fully. Samsung also tried its best to bring its M series in the Indian market to compete with Xiaomi but neither the M series nor A series worked that well in India.
Indian consumers especially those below 35 are super educated about mobile tech. Thanks to some famous Indian YouTubers Technical Guruji, Geeky Ranjit, Sharma Ji Technical Etc.
Youtube has played a huge role in educating Indian Youth with the latest tech and in-depth specifications. Some times even smartphone company employees feel themselves to be less aware of the specifications in front of Indian consumers.
Selling in such a competitive market is not a joke. Companies like Samsung, LG, and Sony work on a bigger margin than Xiaomi or Oneplus. As we know the most innovative products are often seen by these big giants only.
They spend a lot of money on research and development. Companies like Samsung always try to go one step further to create something new and unique. Samsung was working on its folding phone for years, they spent a lot of money just to develop the technology. This is one of the biggest reasons these companies do not work on a minimum margin.
On the other hand, Chinese brands like Xiaomi, Vivo, Oneplus, etc. mostly sell designs that already exist in the market. It is always easy to reverse engineer something than making it from scratch.
We are not saying that these brands do not make their own designs, they surely do, but most of their phones are from existing technologies or designs. This is a good thing for consumers as these companies do not bare that high cost for the research and development and they manage to survive for less profit.
Samsung’s logic so far was that it cannot survive with a low profit. However, it changed slowly by 2019. Now finally Samsung has played a smart card. They kept the standard profit for all other countries but for India, they decided to work on minimum margin, at least for some phones.
It will be interesting to see if Samsung keeps going in this direction or they will step back from their decision for the upcoming phones.