Samsung Sees India as Key Strategic Market with 'Immense Potential'

Samsung sees India as a "key strategic market" with immense potential and remains optimistic about its growth trajectory despite global trade and tariff turmoil. The company will continue to invest in innovation, manufacturing, and local value addition, aligning with India's vision of a self-reliant economy. Samsung views India as crucial for both local demand and global markets, with plans to locally manufacture its flagship foldable smartphone Galaxy Z series in India.

Samsung Electronics remains bullish on India's growth potential, highlighting its investments, foldable phone success, and market optimization strategies. Despite global trade and tariff turmoil, the company sees India as a key strategic market with immense potential [1]. Samsung's long-term commitment to India remains unwavering, as it views the country as a cornerstone of its global strategy [1].

JB Park, President and CEO of Samsung Southwest Asia, expressed optimism about India's growth trajectory, driven by government initiatives like Make in India, Digital India, and a robust digital ecosystem. Samsung continues to invest in innovation, manufacturing, and local value addition, aligning with India's vision of a self-reliant economy [1].

Samsung's revenue from the Indian market exceeded Rs 1 lakh crore in FY24, with the company operating two manufacturing plants, three R&D centers, and one design center in India. The company plans to locally manufacture its flagship foldable smartphone Galaxy Z series at its Noida plant [1].

The company recently introduced the seventh edition of its Galaxy Z series, which has witnessed unprecedented demand, with over 2.1 lakh pre-orders for Galaxy Z Fold7, Galaxy ZFlip7, and Galaxy Z Flip7 FE. Samsung is taking necessary steps at its manufacturing factory in Noida to meet this demand [1].

Samsung's semiconductor division, however, faced challenges in the second quarter of 2025, with a 93.84% plunge in operating profit, driven by U.S. export restrictions on advanced chip sales to China and inventory adjustments [2]. Despite this, Samsung expects the industry environment to improve in the second half, driven by demand for artificial intelligence from continued investments by major cloud service providers [2].

The company's partnership with Tesla, involving the manufacturing of Tesla's next-generation AI6 chips at Samsung’s Texas facility, bolsters its foundry business [2]. Samsung's memory division saw sales increase 11% quarter-over-quarter, with a focus on expanding HBM3E sales to address server demand [2].

India has overtaken China as the top smartphone supplier to the US market in the second quarter of 2025, with its export share jumping from 13 percent to 44 percent year-over-year. This shift reflects ongoing trade tensions and manufacturers’ strategic pivot toward supply chain diversification, primarily led by Apple’s expansion of iPhone production in India [3].

Samsung ranked second in the Indian smartphone market in Q1 2025, with 16.4% market share. The company aims to increase efficiency and concentration in its portfolio, reducing SKUs to focus on key markets [1].

References:
[1] https://money.rediff.com/news/market/samsung-india-optimistic-growth-foldables-market-strategy/31331420250803
[2] https://www.benzinga.com/markets/equities/25/07/46745342/samsungs-chip-profits-crash-94-ai-demand-tesla-deal-hbm3e-ramp-offer-hope-for-2h-comeback-as-trump-hits-south-korea-with-15-tariff
[3] https://www.india-briefing.com/news/india-becomes-top-us-smartphone-supplier-in-q2-2025-38953.html/