Samsung is allegedly laying off upwards of 1,000 employees in India. A report from the Economic Times, claims the main reason for this is the fierce competition in the face of Chinese competitors like Xiaomi which have put huge pressure and eroded profits in the local market.
According to anonymous Samsung India representatives, the cuts will affect the R&D, sales, marketing, manufacturing and corporate relations departments.
A big problem that Samsung is facing in India is the underwhelming online sales of its smartphones and TVs. According to reports, the online channels account for upwards of 40% of all smartphones sales and 30% of TV sales in India and the early entry of Chinese vendors in that field is paying off at the expense of Samsung.
According to a recent Counterpoint report Samsung is currently second in online smartphone sales for India with 15% market share but is far behind leader Xiaomi which accounts for 43% of web sales.
Samsung representatives have expressed their beliefs in improving the efficiency of the company business model by realigning investment based on current priorities. These measures include the planned opening of the world’s largest mobile phone plant and investments into 5G networks.
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