As India heads into its peak festive shopping season, Samsung India is making a bold bet: artificial intelligence, coupled with affordability, will drive consumer upgrades across tiers and product categories.
“We are launching new products across smartphones, tablets, earbuds—essentially an entire AI-enabled ecosystem,” said Aditya Babbar, Vice President, MX Business, Samsung India, in a media interaction. Among them are the Galaxy S25 FE, Tab S11 series and Galaxy A17—all designed to bring premium AI features to mainstream and entry-level consumers.
At the heart of this strategy is the democratisation of AI. With the Galaxy A17, priced under ₹20,000, Samsung brings AI capabilities like “Circle to Search” and AI-powered camera tools to first-time smartphone users. “We’re offering Gorilla Glass, the slimmest and lightest build, and flagship-level features with zero down payment and EMI of just ₹1,700,” Babbar said.
“Samsung’s AI-first approach is no accident,” said Babbar. From voice enhancement tools in noisy videos to photo editing with object erasers and instant slow-mo, AI is being positioned as the key differentiator across form factors.
He emphasised how AI is transforming devices from consumption tools into productivity hubs. “Tablets, once passive screens, are now used to summarise PDFs or edit content on the go—AI has fundamentally altered use cases,” Babbar noted.
A Shift in Consumer Behaviour
Babbar observed a shift in consumer psychology, particularly in Tier 2 and Tier 3 cities, where aspirational buyers are focusing more on monthly outlays than one-time costs. “Shoppers now walk in asking, ‘What can I get for ₹2,000 EMI?’ rather than quoting a total price,” he said. This trend is reshaping how products are positioned and financed.
Samsung has invested in equipping 20,000 stores across India with Wi-Fi and AI demo capabilities. Retail staff undergo monthly AI training to ensure a consistent pitch, even in small towns. “A user in Moradabad should experience the same AI features as someone in Mumbai. Language localisation also plays a key role,” Babbar added.
The company has also extended UPI-based cashback offers—traditionally reserved for credit card users—to make upgrades more inclusive.
Premiumisation with Purpose
While affordability is a central theme, Samsung is aggressively targeting the premium segment. Babbar highlighted that value-wise, Samsung leads the Indian market and aims to grow faster than the projected 5% industry value growth during the festive period.
Above ₹30,000, premium phones have seen double-digit growth, fueled by features such as high-performance processors, superior build quality, and niche innovations like gaming-focused AI tools. “We’ve given consumers choice—Exynos, MediaTek, Qualcomm—depending on whether performance, graphics, or AI is the priority,” said Babbar.
He cited the Galaxy A56’s metal-glass body, colour palettes aimed at Gen Z, and real-time in-game AI integration via “Circle to Search” as examples of Samsung’s segmentation strategy.
Competitive Edge, Steady Focus
Despite aggressive marketing and price wars from rivals, Babbar remained firm on Samsung’s consumer-first strategy. “We don’t chase gimmicks. If we continue innovating and making premium accessible, we’ll win long-term,” he said.
Amid ongoing geopolitical uncertainties and the government’s decision to maintain the current tax structure, the Goods and Services Tax (GST) on mobile phones will remain at 18%. Consequently, consumers will not experience a reduction in smartphone prices. However, Samsung remains optimistic, especially since the GST on other essential items has been reduced. Babbar stated, “More money in consumers’ hands will only encourage aspirational purchases,” while downplaying the immediate concerns facing the smartphone segment.
Also, with Samsung laptops now being produced locally and Galaxy AI features expanding across their product line, Samsung’s festive strategy is clear: focusing on AI for everyone, with affordability and aspiration at the forefront.
