Samsung has a new competitor in India's budget segment

Last updated: May 15th, 2018 at 16:35 UTC+01:00

Well, information technology looks like any plans Samsung may have had to take back the budget market in Bharat will take to exist sent dorsum to the drawing board. Xiaomi has become a force to reckon with in the Indian budget smartphone scene, with some analysts saying information technology has beaten Samsung to the top spot thanks to smartphones priced aggressively for the hardware and features they offer. Today, another Chinese OEM has joined the race: Oppo has launched the first smartphone nether its Realme sub-brand in India, and it's got killer specs and a very impressive price tag.

Xiaomi isn't the only enemy now

Oppo has been a strong player in Bharat in the mid-range segment for some time, mainly thanks to phones that focus on high-resolution front cameras at prices that aren't equally low as Xiaomi's but aren't as high every bit Samsung's, either. Now, Oppo has decided to take the fight to Xiaomi with the Realme one, a smartphone that offers hardware such as a MediaTek P60 SoC, 6GB of RAM, 128GB of expandable internal storage, and a Full Hard disk 18:nine display for Rs. 13,990, which translates to effectually $205 at current conversion rates. Other specs include 13-megapixel and 8-megapixel rear and front cameras, LTE connectivity, a 3,410 mAh bombardment, and Android viii.1 with Oppo'due south custom pare on meridian.

If we wait at Samsung's Indian lineup in the same price segment, the company does have a similarly specced device chosen the Galaxy On7 Prime number (read our review here). Now, it's not as good on some fronts. It has a weaker processor (an Exynos 7870), a standard 16:9 display, bottom internal storage, and an older version of Android, but it'due south also priced at around $xv (Rs. i,000) less than the Realme 1. It'due south also readily available unlike Oppo'south new phone. While both are sectional to Amazon India, the Realme 1 will be sold through flash sales, in which a few units of the device will be put upwardly for auction once every few days.

The wink auction model, in fact, the biggest obstruction for the Realme 1. Being much more (financially) resourceful than Xiaomi (Oppo is the parent company of Vivo and OnePlus, which should give you an idea), though, information technology might not be long before Oppo is able to past that obstacle. The time information technology takes to be able to do that does give Samsung some animate space, but information technology certainly looks similar the Korean company'southward bug in Republic of india's upkeep market place have intensified with the Chinese OEM's entry into the heavily crowded segment.

A sub-brand nonetheless the best solution for Samsung?

And that brings usa to what we think might help Samsung fend off the increasing competition in India: a sub-brand similar to Oppo's Realme or Huawei's Honor. Given Samsung'due south size and business model, making a profit in the budget segment comes at the expense of a smartphone's hardware. It'south a business concern model that cannot aid the company survive in lucrative markets such as India, and that's exactly why a sub-brand would make sense. Sure, Samsung will need to brand some money even with a sub-brand, only it will still get more elbowroom to play with the value-for-money quotient than information technology ever will for devices sold with the Galaxy moniker.

Will Samsung double downwardly on its efforts now that it's not but Xiaomi information technology needs to defend itself against in the Indian market? Or could this exist the last straw that makes it either spin off a sub-brand or simply quit the budget marketplace altogether? Quitting isn't really an option it can pursue, but quick action is clearly needed, and we're interested to hear what you call back the Korean giant should exist doing at this betoken, so leave a comment beneath and get a give-and-take going!