Here’s Why Samsung is Facing a Decline in Pakistani Smartphone Market

Usama AnjumLast Updated: Oct 25, 2023

For a long time, the tech giant Samsung remained the top choice of users in Pakistan. However, the trend seems to be changing with the advent of new smartphone companies in recent years. There was a time when Samsung and Apple were considered the symbols of quality, but now other brands like Xiaomi, Oppo, Infinix, etc. have also made their mark in the market.

On the Y axis of the graph above, the value of the smartphones has been mentioned, while on the X axis, the timeline has been mentioned. As evident, the value of sales has kept declining in the last couple of years. To provide clarity, we are going to quote some of the primary reasons that have led to the downfall in Samsung’s sales.

Reasons for Samsung’s Decline in Pakistan

Price:

One of the primary factors contributing to the decline in Samsung’s sales in Pakistan is the price of its smartphones. While Samsung smartphones are famous for their quality and extravagant features, they tend to be pricey as compared to some of their competitors. For instance, let’s take the Samsung A24 and Xiaomi Redmi Note 12 as comparisons. The Samsung A24 comes with a price tag that reflects its quality and brand reputation. In contrast, the Xiaomi Redmi Note 12 offers better specifications like a better refresh rate, more brightness, and better camera configuration at around the same cost. This pricing difference has become a significant consideration for many consumers in Pakistan.

Low Resale Value of Flagship Phones:

Another reason that has resulted in the drop in sales of Samsung smartphones in the Pakistani market is the comparatively low resale value of its flagship phones. For users who frequently upgrade their smartphones, the resale value is a crucial factor to consider. Samsung flagship phones tend to depreciate more rapidly in the resale market as compared to some other brands, like Apple. This can deter potential buyers who prioritize the future value of their devices.

A Competitive Market:

In recent years, the smartphone market in Pakistan has transformed into a highly competitive landscape. Samsung and Apple, once dominant symbols of quality, now face formidable competition from emerging brands like Xiaomi, Oppo, Infinix, and others. These brands have rapidly gained popularity by offering feature-rich smartphones at competitive prices. As a result, consumers in Pakistan now have a multitude of options to choose from when purchasing a new smartphone.

Market Saturation:

For many years, Samsung enjoyed a dominant position in the Pakistani mobile phone market. Their devices were highly considered for their quality and features. However, with the passage of time, a significant portion of the population has acquired Samsung smartphones. As more and more people became Samsung users, the market reached a point of saturation. Consequently, the growth potential for Samsung in the country became restricted. The market had become fiercely competitive, with a number of other smartphone brands entering the scene.

The influx of these competitive alternatives has challenged Samsung’s market share and necessitated a reevaluation of its pricing and marketing strategies to remain competitive. By addressing these factors, Samsung can better position itself in the evolving Pakistani smartphone market.