Premium Smartphone Shipments Up 29% YoY in Q3 2022 in Key Southeast Asia Markets

According to Counterpoint Technology Market Research’s Southeast Asia Monthly Smartphone Channel Share Tracker, shipments of premium smartphones (priced above $400) in key Southeast Asian markets grew 29% year-on-year (YoY) in the third quarter (Q3 2022) Has increased ,

On the other hand, total smartphone shipments declined by 10% year-on-year during the quarter. Southeast Asia continues to face macroeconomic headwinds. This has resulted in weak business and consumer sentiments. Investment has also slowed down, including the amount of FDI for some countries. All this has led to major smartphone OEMs hoarding more than the required inventory before Q4 2022. The massive year-on-year growth in premium smartphone shipments reflects the resilience of customers in this segment during tough times.

Source: Counterpoint Research Southeast Asia Monthly Smartphone Channel Share Tracker, November 2022

September saw an increase in shipments across the region. But in 2022, this seasonal behavior has been limited by continued low consumer sentiment. The lower economic strata are grappling with economic uncertainty, which is reflected in lower shipments and higher inventories. Some relief is expected from the festive season of the fourth quarter.

Q3 2022 also saw some brand-level hits and misses. While Samsung shipments declined by 13%, Apple’s shipments increased by 63% across all major countries. Vietnam seemed to be grabbing the iPhone faster than its neighbors.

Some countries like Indonesia and Vietnam have seen slow progress in 5G smartphone demand, while it is much faster in Thailand and the Philippines, where networks are better and a large number of consumers are tech-savvy. Operators are still offering good package value to customers, though this affects margins.

Specifications like processor, RAM, internal storage, battery capacity and charging speed remain the priority. Even though consumers in Indonesia and Vietnam do not actively consider 5G As a buying factor, they count it as an essential feature for the future.

Operators such as Globe in the Philippines are keen to expand their 5G infrastructure beyond metro areas, while Indonesia is beginning to see 5G use cases for industries such as mining. The $200-$400 5G smartphone price band saw 73% YoY growth, meaning 5G is being made a key feature by most OEMs.

Source: Counterpoint Research Southeast Asia Monthly Smartphone Channel Share Tracker, November 2022

“Most Southeast Asian countries such as Indonesia, Thailand and the Philippines raised interest rates in Q3 2022 to cushion the blow of rising prices on the general consumer. Inflation averaged 5% during the quarter in most SEA countries, which is not alarming, but had an impact on consumers. Prices of fuel, overall logistics and core commodities soared, prompting consumers to hold onto their wallets and avoid big spends like smartphones. Most of such consumers are blue-collar workers or economically weaker sections. While a country like Thailand is struggling to regain pre-COVID volumes due to declining tourism levels, Vietnam has shown 13% GDP growth in Q3. The impact of the same is visible in smartphone shipments over the last few months,” said senior analyst Glenn Cardoza.

OEMs still have more than required inventory of older models which they may try to sell using all possible marketing tools across offline and online channels. New models launched since August will mostly continue to fill the market with 5G devices. Offline retail players are likely to promote experiential outlets, enhanced payment convenience, trade-in offers and better after-sales support. Models like Samsung’s Galaxy A04s and Vivo’s Y02s could again play a leading role in driving low-range smartphone shipments. This is necessary to reflect the general condition of the market.

* Major Southeast Asia countries include Indonesia Thailand Philippines and Vietnam