Samsung India's profit fell by 4.9%; LG India's by 23% in FY22

4 Nov 2022 , 11:38 AM

Apple, Samsung, and LG, three of the biggest consumer electronics companies in the world, have reported pressure on the profit of the India business in the financial year 2021-22 (FY22).

Industry executives told reporters that this is due to all-time high component and commodity costs while ensuring competitive pricing to continue their pace of revenue growth in the country.

According to the most recent regulatory filings made to the Registrar of Companies (RoC), Samsung Electronics’ and LG Electronics’ respective net profits in India fell by 4.9% and 23%, respectively, to Rs3,844 crore and Rs1,174 crore, respectively, in 2021—22.

Apple had a nearly flat year in FY22; its net profit increased by 3% to Rs1,263 crore. Apple has been increasing its net profit in India at a high double-digit rate. In FY21, Apple’s net profit in this country increased by 32% while revenue increased by 68%.

Due to repeated Covid waves and inflationary pressure on consumer wallets, India’s overall demand climate has been challenging over the past fiscal year.

The leading mobile phone brand in India by sales and the market leader in televisions overall is Samsung, the second-largest foreign consumer goods company in India behind the automobile giant Maruti Suzuki. By revenue, LG is the largest home appliance manufacturer in the nation.

Apple is the market leader in India’s premium smartphone market, and unlike its rivals, the pandemic had no effect on its sales growth as customers switched to more expensive handsets in the hope that they would last longer.

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