Samsung Electronics decided to stop its feature phone business in India starting in December this year and focus on smartphones.

According to Korean media Business Korea, Samsung Electronics manufactures feature phones in India through local mobile phone company Dixon Technology. It had a 12% share of the Indian feature phone market in the first quarter of this year, ranking third behind Itel and Lava, but Samsung Electronics is gradually falling behind its rivals. In the fourth quarter of 2021, the company's feature phone market share in India was 18%.

According to Counterpoint Research, the feature phone market accounts for about 14% of the entire mobile phone market in India. In the first quarter of this year, the global feature phone market was down 20% from the same period in 2021, and the Indian feature phone market also shrank by 39% over the same period. On the other hand, India's smartphone market is gradually expanding. Last year, the growth rate of the Indian smartphone market was 18%, which was higher than the overall growth rate of the global smartphone market.

In addition, it is reported that another reason for Samsung Electronics to withdraw from the Indian feature phone market is that it is one of the applicants for the Production Linked Incentive (PLI) program in India, and must produce phones with an ex-factory price higher than 15,000 rupees ($200). Eligible for subsidies.