Smartphone Market in South East Asia Continues Positive Growth Trajectory in the Second Quarter, According to IDC

KUALA LUMPUR, August 29th, 2016. According to the latest International Data Corporation (IDC) Asia/Pacific Quarterly Mobile Phone Tracker, total smartphone shipments in the South East Asia (SEA) region recorded nearly 28 million units in the second quarter of 2016. This reflects an 18.1% increase quarter-on quarter (QoQ) and continued positive growth year-on-year (YoY) of 6.5%. Countries in the SEA region tracked by IDC’s local and regional analysts are Indonesia, Malaysia, Myanmar, Philippines, Singapore, Thailand and Vietnam.

"Competitive price points and heavy marketing activities in a now crowded market are the key driving factors for the budget conscious SEA market. Smartphones priced at Jensen Ooi
, Market Analyst, Client Devices Research, IDC Asia/Pacific.

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In terms of market share, the overall smartphone market remains dominated by Samsung, followed by OPPO, True (an operator in Thailand), Asus and Lava.

• Samsung retained its top position by relying on its price and spec competitive Galaxy J series which was highly suited for the budget conscious SEA market. Meanwhile, the flagship Galaxy S7 series saw better YoY performance in terms of unit shipments compared to the Galaxy S6 series launched back in 2015.
• OPPO moved to second position for the first time. Despite Oppo’s continued marketing investments to build a solid brand equity for its F1 family, it was the Neo model that drove up its volume.
• Asus’ position is supported by its highly affordable Zenfone Go model. Meanwhile, the growth of its flagship, the Zenfone 2 Laser, slowed down in preparation for the new Zenfone 3 targeted for launch in the third quarter.
• Unit shipments for True and Lava were propelled by heavy operator activities to increase 3G subscribers nationwide in Thailand.

Meanwhile, 3G handsets still make up majority of the market share as they carry significantly lower price points as opposed to 4G ones, a pivotal factor particularly for SEA consumers. Furthermore, the slow uptake of 4G is largely attributed to the temporary rise of 3G devices in Thailand, where operators were in a rush to migrate subscribers from 2G to 3G, handing out large amounts of free or heavily discounted handsets.

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From the third quarter onwards, IDC expects an increase in demand for handsets with better specifications. While smartphones of

“With the rise of replacement users in SEA seeking to upgrade their handsets in order to cope with the latest usage and apps, vendors will need to increase the market availability of handsets with better specs that come at slightly higher prices, which the buyers are willing to invest in for a better usage experience,” adds Ooi.

Global, China-based and local vendors are expected to switch strategies as the demand for SEA market begins to change where solely relying on supplying highly affordable low-end handsets to the market will no longer suffice to keep their businesses afloat.

For inquiries about this tracker research, please contact your IDC account manager or Shari Jane Jansen at sjansen@idc.com. For media inquiries, please contact Trista Efendi at tefendi@idc.com

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About IDC
International Data Corporation (IDC) is the premier global provider of market intelligence, advisory services, and events for the information technology, telecommunications, and consumer technology markets. With more than 1,100 analysts worldwide, IDC offers global, regional, and local expertise on technology and industry opportunities and trends in over 110 countries. IDC's analysis and insight helps IT professionals, business executives, and the investment community to make fact-based technology decisions and to achieve their key business objectives. Founded in 1964, IDC is a subsidiary of IDG, the world's leading technology media, research, and events company. To learn more about IDC, please visit www.idc.com. Follow IDC on Twitter at @IDC.

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For inquiries, please contact:
Jensen Ooi
Market Analyst, Client Devices Research
IDC Asia/Pacific
+60376632147 
jooi@idc.com

Trista Efendi
Corporate Communications Executive, IDC ASEAN
+60 1139346725
tefendi@idc.com