Wow. A 326% in growth for smart phones was achieved in the Philippines. Apple, Samsung and Nokia please focus on this market.
September 17, 2012
Local smartphone sales surge
THE PHILIPPINES posted an exponential three-fold growth of 326% in smartphone volume sales, making it the fastest growing market for smartphones in Southeast Asia, a report from Singapore-based research firm GfK Asia showed.
It is also the country with the highest jump in smartphone market share within a year, from 9% to 24%, GfK said.
The GfK report measured the overall growth of the mobile phone sector in the region, which grew by 24% in volume over the last 12 months.
“In the last twelve months, sales of over 118 million units across the seven key markets in the region — Singapore, Malaysia, Thailand, Indonesia, Vietnam, Cambodia and the Philippines — brought the total worth of the mobile phone sector to almost $13.7 billion” GfK said.
The firm cited high consumer demand for smartphones and basic feature phones in Southeast Asia’s fast developing markets as the main growth drivers in the mobile phone sector.
Insights from the research firm also revealed that consumers in Southeast Asia bought additional 10 million units of feature phones, which was 12% more than what was recorded a year ago.
However, GfK said it was the rising popularity of smartphones in the region that made smartphones account for the larger portion of the total mobile phone market worth.
Based on GfK’s findings, the smartphone consumer purchase rate surged by 78% across seven countries, making up over 61% of the sector’s overall value in Southeast Asia.
“Feature phones still reign as the more prevalent mobile phone type used by consumers in the region’s emerging markets,” said Mr. Gerard Tan, account director for Digital Technology. “However, smartphones adoption is escalating at a rapid pace with individual country’s growth rates reported in the range of 42% to 326%.”
The highest growth came from the Philippines.
“I think this is driven by greater affordability, as prices of handsets and carrier services go down, and strong demand for Internet and social media services among Filipinos. This is where mobile versions of Facebook and Twitter come in,” said Philippine Long Distance Telephone Co. Spokesperson Ramon S. Isberto, affirming the GfK’s findings for the Philippines.
Additionally, the report showed that consumers in Southeast Asia spent some $8.75 billion on almost 29 million smartphones within the last 12 months, translating to 61% and 78% growth in volume and value. Findings showed that smartphone growth in the region was driven primarily by the more affordable devices, with prices ranging from $100 to $200.
“Unlike the more developed countries like Singapore and Malaysia, smartphone sales penetration levels in some of the less developed markets such as Thailand and Vietnam are still relatively low at 19% and 11%, respectively, leaving a significant portion of the population still available for potential growth,” noted Mr. Tan.
“However, with major manufacturers recently announcing their intentions to launch low-end smartphones priced below $100, the device will be within the reach of an even larger pool of consumers and the market expected to grow even faster when these models are made widely available,” said Mr. Tan.
“This move is likely to significantly expedite the demand surge for smartphones in the region’s yet to be converted feature phone user population which we expect to see continued robust growth for at least the next two years,” he said.