International Data Corporation (IDC) reported that this year, more than 3.5 million smartphones were shipped to the Philippines during the first quarter alone. This is a 20 percent increase compared to the recent months prior. This makes the Filipino consumers the fastest spenders in the Southeast Asian region with surging demand where multiple active players are present.
|AFP File Photo|
“With many of the more mature smartphone markets of the world already displayed signs of saturation, the Philippines smartphone market continues to enjoy robust growth owing to a relatively low smartphone penetration rate (30% in 2015), active local brand presence, and healthy consumer spending,” Jerome Dominguez, IDC Philippines market analyst for mobile devices, said in a press release.
The strong growth is attributed to the dominance of affordable devices pushed by the local vendors. IDC reports that the smartphones under Php 3,500 owns the majority of market share. Although the local companies have a solid grip on the market, Chinese and other foreign players are slowly catching up. IDC observed that Samsung and ASUS are aggressively penetrating the sub-Php 6000 space while the China-based vendors like Huawei and OPPO are not too far behind with expanding their foothold in the market.
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Huawei’s extraordinary growth in developing markets is staggering according to market research firm Kantar Worldpanel. The rising brand influence is a reflection of Huawei’s steady and continued revenue growth. In 2015, Huawei shipped 108 million smartphones worldwide, which is up 44 percent year-on-year.
On the other hand, the slow growing developed markets shows reluctance in switching brands.
Samsung is responsible for 37% of smartphones sold in the United States while Apple has 29% shares. Compared to the other side of the world, specifically in China, Samsung owns only 9% where as Apple saw a drop to 20% while Huawei leap frogged ahead of the market to 26%.
The other large markets with huge growths include India, South America and Southeast Asia.
“Defect issues and poor after-sales continue to plague the smartphone market. It is only a matter of time before majority of Filipino consumers put more premium on smartphones that are not just easy on the pocket but also offer good value for money,” said Dominguez.
With the advent of surging smartphone growth, IDC said that future battles will be fought in innovation and after-sales service.