Smartphone ownership continues on its uptrend across Southeast Asia, raising total sales in the last 12 months in the seven markets of Singapore, Malaysia, Thailand, Indonesia, Philippines, Vietnam and Cambodia to a high of nearly 120 million units. The latest GfK findings for the region reflect a spike in smartphone (including phablets) sales by 44 percent in volume and 24 percent in value compared to the same period a year ago.<\/p>\n
\u201cThe big developing countries are the ones fuelling the strong surge in adoption as many outside the big cities are probably just making the switch from their basic feature phone and acquiring their first smartphone,\u201d highlighted Gerard Tan, Account Director for Digital World at GfK Asia. \u201cFor instance, the markets of Indonesia, Vietnam and Thailand have performed extremely well this year, reporting high growth of over 30 percent in generated revenue and even more in sales volume.\u201d<\/p>\n
Based on the latest data from GfK, fastest growing markets in terms of volume turnover in the past 12 months were Indonesia, Vietnam and Thailand, which reported 70, 56 and 44 percent spike in demand over the previous period. In value terms, it was Vietnam, Indonesia and Thailand which drew in 52, 32 and 31 percent increased sales dollars against last year.<\/p>\n
\u201cA key driver fuelling the strong market performance especially in the developing countries is the introduction of more low-end models by new Chinese manufacturers, making smartphones more affordable and taking competition in the marketplace to an even more intense level,\u201d said Tan. \u201cThese budget smartphone models have gone down particularly well in the developing markets,\u201d Tan observed.<\/p>\n
Indonesia is the only market where homegrown brands have continued to grow in popularity, garnering over 16 percent share in volume and 7 percent share in value of the local market. Meanwhile, Chinese smartphone brands are more prevalent in Indonesia, Malaysia, and Vietnam where their respective proportion of consumer spend have reached more than 10 percent of the total market<\/p>\n
\u201cAlthough international brands dominate the region\u2019s smartphone market, Chinese brands are gaining significant presence,\u201d said Tan. \u201cMajor international brands are losing shares to the Chinese brands in price competition due to the low-cost of the latter which are selling their smartphones, including phablets, within the US$50 to US$200 range.\u201d<\/p>\n
More than 345 Chinese branded smartphones now exist across the region. While an internationally branded smartphone averaged at around US$253, a Chinese branded one cost only US$159\u201458 percent lower.<\/p>\n
\u201cCompetition in the market will further intensify, as Chinese manufacturers are stepping up their activities in more countries, notably Singapore, Philippines and Thailand,\u201d commented Tan. \u201cHowever, with the much anticipated launch of new models by several international brands, we can expected to witness some fierce competition in this this region; with the eventually winners who will gain from the price wars being the consumers,\u201d he concluded.<\/p>\n","protected":false},"excerpt":{"rendered":"
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