Some 3.5 million smartphones were shipped into the Philippines in the first quarter, making the country the fastest growing market in Southeast Asia.
“While 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, active local brand presence and healthy consumer spending,” said Jerome Dominguez, market analyst for mobile devices of IDC Philippines.
The Philippines’ smartphone penetration rate reached 30 percent in 2015.
Dominguez said local vendors continued to dominate the Philippine smartphone market as they offered the most affordable smartphone options.
“Smartphones priced below P3,500 still make up the majority of smartphones shipped to the Philippines. MyPhone’s successful budget my28S model catapulted its lead in the smartphone market in first quarter of 2016. However, this is no reason for the homegrown brands to rest on their laurels as global and Chinese vendors are gradually catching up on the budget segment,” he said.
The past few quarters showed vendors such as Samsung and Asus playing more aggressively in the lower-than-P6,000 space, IDC said.
China-based vendors Oppo and Huawei are also on a steady growth track as they continue to expand channel coverage.
“As the Philippines smartphone market matures and shifts from being an acquisition game to a replacement one, consumers are expected to demand more from a smartphone in terms of specs and performance,” Dominguez said.
He said with the mobile brand war growing more intense by the day, vendors would be well-advised not to be complacent and continue to foster innovation and improve product quality and after-sales to stay ahead of the game.
“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,” Dominguez said.
IDC expects smartphone shipments to the Philippines to grow 25 percent this year.