High-end smartphone shipments up 29% YoY in Q3 2022 in major Southeast Asian markets

Shipments of high-end smartphones (priced over $400) in major Southeast Asian markets* were up 29% year-over-year (YoY) in the third quarter (Q3 2022), according to the Southeast Asia Monthly Smartphone Channel Share Tracker from Counterpoint Technology Market Research. .

On the other hand, total smartphone shipments were down 10% year-over-year in the quarter. Southeast Asia continues to face macroeconomic headwinds. The result has been a weakening of business and consumer confidence. Investments also slowed, including FDI volumes for some countries. All of this has led major smartphone OEMs to collect more than required inventory ahead of Q4 2022. The massive year-over-year increase in high-end 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 was supposed to see an increase in shipments to the region. But in 2022, this seasonal behavior has been limited due to still low consumer sentiment. The lower economic strata are reeling from economic uncertainty, resulting in lower shipments and higher inventories overall. The fourth quarter holiday season should bring some relief.

There were also hits and misses at the brand level in Q3 2022. While Samsung’s shipments fell 13% year-on-year, Apple’s shipments were up 63% year-on-year across all key countries. Vietnam seemed to be grabbing iPhones at a faster rate than its neighbors.

The demand for 5G smartphones has seen slow progress in some countries like Indonesia and Vietnam, while it is much faster in Thailand and the Philippines, where the network is better and a large number of consumers are rather keen. of technology. Operators still offer good package value to consumers, even if it affects margins.

Specs like CPU, RAM, internal storage, battery capacity, and charging speed remain a priority. Even though consumers in Indonesia and Vietnam do not actively view 5G as a purchase factor, they tend to view it as a necessary feature for the future.

Operators like Globe in the Philippines are keen to expand their 5G infrastructure beyond metropolitan areas, while in Indonesia 5G use cases have started to emerge for industries like mining. The $200-$400 5G smartphone price range has seen 73% year-over-year growth, meaning 5G is becoming a staple feature for most OEMs.

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

“Most Southeast Asian countries like Indonesia, Thailand and the Philippines raised interest rates in the third quarter of 2022 to soften the blow of rising prices on the common consumer. Inflation in the quarter was an average of 5% in most ESA countries, which is not alarming, but has taken its toll on consumers. base have increased, forcing consumers to hold on to their wallets and postpone big expenditures like smartphones. The majority of these consumers are blue-collar or economically weaker sections. While a country like Thailand is struggling to regain pre-COVID volumes due to depleted tourism levels, Vietnam posted 13% GDP growth in the third quarter. The effect of the same is reflected in smartphone shipments over the past few months,” said declared the ana principal lyst Glen Cardoza.

OEMs still have more than the required inventory of old models that they could try to sell using every possible marketing tool across offline and online channels. New models launched since August will continue to fill the market with mostly 5G devices. Offline retail players are likely to propagate experiential points of sale, increased payment convenience, trade-in offers and better after-sales support. Models like Samsung’s Galaxy A04s and vivo’s Y02s could lead the charge in boosting low-end smartphone shipments again. This is necessary for the market to represent normalcy.

* Major Southeast Asian countries include Indonesia, Thailand, Philippines and Vietnam