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Smartphone Market Consumption 2016 Forecast to 2022

Monday, October 10, 2016 0:06
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(Before It's News)

Domestic mobile handset manufacturers are rapidly gaining a strong foothold in Southeast Asian countries with their feature-rich devices at much more affordable prices compared global vendors such as Apple, Samsung and Microsoft. Domestic smartphone vendors have enjoyed significant success in the Philippines and Indonesia on the back of low-cost devices accompanied with offers on entertainment and social media content and applications. Filipino vendor Cherry Mobile offers 4G mobile at $299, which has the same specs but costs nearly 30% less than Samsung Galaxy S6 edge. On the other hand some markets like Vietnam have remained challenging for local vendors as consumer in the country tend to favor high-status international brands. Most domestic vendors have followed a specific formula incorporating 4Ps of marketing – product, price, place and promotion – to gain market share of established brands. These homegrown vendors have been facing strong competition from Chinese and global vendors who are responding by introducing devices at low prices to save their market share. Regulations in some countries like Indonesia where government has mandated local production, have benefitted domestic vendors by increasing cost for global vendors.


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Key Findings

• Domestic mobile phone vendors use both online and offline channels to market their products. They are also investing in providing efficient after-sale services to better compete with international brands. Thai mobile has a network of 72 service centers across the country.

• Local vendors are promoting their offerings through popular celebrities to gain visibility and credibility in the markets, while seasonal promotions such as offering free access to OTT services etc. are also helping vendors to attract customers.

• Chinese and international device companies pose the greatest challenge for local device manufactures as they offer mobile phones at very low profit margins and enjoy economies of scale owing to international presence.

• Increasing usage of social media and OTT applications is inducing demand for high-bandwidth smartphones, driving users to switch from feature phones to 3G/4G-enabled smartphones. The vendors have been taking advantage of the trend by offering low-cost smartphones supporting advanced mobile technologies.



‘Smartphone Trends in Asia: The Rise of Domestic Brands in Southeast Asia’s Smartphone Markets report provides an overview of the strategies domestic mobile phone vendors have adopted in Southeast Asia, including analysis of the major components.


It consists of:

• Overview of leading domestic mobile phone brands, parties ventured into smartphone market and their market share.

• Overview of the key strategies involving 4Ps of marketing in their business models.

• Analysis of regulatory, technological and demand drivers along with competition inhibitors.

• Key findings from strategies in the region and a set of recommendations for local, Chinese and global vendors.


Reasons to Buy

• Provides a comprehensive, detailed understanding of Tier 3 vendor smartphone product, pricing, and positioning strategies in the diverse South Asian markets.

• Includes analysis on the pricing strategies, business models and the great variety of smartphone vendors, looking in particular at the various challenges and opportunities facing them, with examples from Tier 3 vendors throughout the region.

• Align product portfolios by selecting suitable commercial strategies needed to save market share in highly competitive markets.

• Quicken the decision-making process by understanding the strategies which underpin commercial strategies in terms of market overview, products, pricing, promotion and distribution.

• A section on the smartphones markets in Indonesia, Philippines, Thailand and Vietnam offers particular insight into these markets, including an overview, sales forecasts and an examination of growth drivers and inhibitors.

• Offers an overview of the actionable analysis of trends offers a wider perspective, while its case studies of four Tier 3 vendors in South East Asia provide a resource for more detailed planning.

• Boasts of high presentation quality that allows it to be turned into presentable material immediately, for an executive-level audience.


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Table of Contents

Market context: Current positioning of Southeast Asian handset brands

Market context: Leading domestic brands

Market context: Mobile vendor categories


Market share

How Southeast Asian device makers have leveraged the 4Ps of marketing

The 4Ps of Marketing





Future drivers and inhibitors

Regulatory market drivers

Technology market drivers: Migrating users from 2G to 3G/4G

Demand market drivers: Feature phone to smartphone migration

Competition inhibitors: Competition from new wave of low-cost Chinese vendors

Competition inhibitors: International vendors lowering prices

Market details: Case Studies

The Philippines: Cherry Mobile

Thailand: i-mobile

Vietnam: Bphone

Indonesia: Advan

Conclusions: Key findings and recommendations

Acronyms and Definitions


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