The country's smartphone shipping dropped from 7 percent to 15 million units in 2017, the first declining since the smartphone introduction to the market, according to the recent report by International Data Corp. (IDC) for the Philippines.
IDC stated that the decline was due to the intense competition of high-level brands such as Samsung, both face and live, leading to the expulsion of some market providers.
Cherry Mobile remained the first mobile brand in the country with 23 percent market share, followed by Samsung's 17 percent share and opposition with 12 percent market share. The fourth and fifth major brands are live and ASUS with 8 percent and 5 percent market share, respectively.
"Cherry Mobile is very strong in rural areas, with its phones most of the time less than $100. It is very affordable in rural areas, said Jensen IPO, senior market analyst at IDC.
IDC has a clear trend that has recently popped up in the country's smartphone market: End users switch to mobile phones with higher specifications and better features. He said that the Philippines has always been to the price-sensitive markets in Asia and the Pacific and the rest.
"Despite this, the average price of smartphone sales rose in 2017 to $134, an increase of 13 percent over the previous year. Ultra low-end smartphones, based on less than $100, still represent the lion's share of the market, which represents 59 percent of all smartphones in 2017, compared to 67 percent in 2016 ', IPO said.
In the meantime, the common share of low smartphoneswith prices rose from $200 to $400 from 28% of the previous year to 35% in 2017.
IDC quoted Samsung and Chinese brands as the main brands that lead to the growth of low-end and mid-range segments in 2017.
"The heavy marketing campaigns and lucrative incentives of the sales promoter have enabled these brands to consolidate their mindshare on the local market, increase their shipments and increase their respective market share. The aggressions of these brands have affected the sales of some of the resulting players by reducing their inventories, which finally generally the sending smartphone ' said IPO.
The total number of 4g or long-term development smartphones in the country was 54 percent, which is about 8.3 million units in 2017, the IPO has.
From the point of view of screen size, phablets has seen significant growth in recent years, which is for about a quarter of smartphone shipments in 2017.
"As mobile content continues to grow, smartphones have become the primary device for basic productivity and daily media consumption, and these feeds have the need for larger screens and more specs," said IPO.
The tablet continues to decline as its importance in the market decreased due to the lack of practical use and cannibalism of smartphones with larger screen sizes.
The traditional PC has grown by increasing purchases in connection with education and the growing traction of esports in the country, among other things.
"The smartphone market in the Philippines is set to bounce back in 2018 as the competition between the popular brands, which continues to strengthen its position, and to intensify local and small brands that continue to fight to remain relevant," said IDC. "We expect smartphone vendors to continue to send over phablets and equip their new models with compelling features such as dual cameras, sleek bezel and artificial intelligence on the device ' said IPO.
IDC has more than 1 100 analysts worldwide and offers global, regional and local expertise on technological and industrial trends and opportunities in over 110 countries.
IDC stated that the decline was due to the intense competition of high-level brands such as Samsung, both face and live, leading to the expulsion of some market providers.
Cherry Mobile remained the first mobile brand in the country with 23 percent market share, followed by Samsung's 17 percent share and opposition with 12 percent market share. The fourth and fifth major brands are live and ASUS with 8 percent and 5 percent market share, respectively.
"Cherry Mobile is very strong in rural areas, with its phones most of the time less than $100. It is very affordable in rural areas, said Jensen IPO, senior market analyst at IDC.
IDC has a clear trend that has recently popped up in the country's smartphone market: End users switch to mobile phones with higher specifications and better features. He said that the Philippines has always been to the price-sensitive markets in Asia and the Pacific and the rest.
"Despite this, the average price of smartphone sales rose in 2017 to $134, an increase of 13 percent over the previous year. Ultra low-end smartphones, based on less than $100, still represent the lion's share of the market, which represents 59 percent of all smartphones in 2017, compared to 67 percent in 2016 ', IPO said.
In the meantime, the common share of low smartphoneswith prices rose from $200 to $400 from 28% of the previous year to 35% in 2017.
IDC quoted Samsung and Chinese brands as the main brands that lead to the growth of low-end and mid-range segments in 2017.
"The heavy marketing campaigns and lucrative incentives of the sales promoter have enabled these brands to consolidate their mindshare on the local market, increase their shipments and increase their respective market share. The aggressions of these brands have affected the sales of some of the resulting players by reducing their inventories, which finally generally the sending smartphone ' said IPO.
The total number of 4g or long-term development smartphones in the country was 54 percent, which is about 8.3 million units in 2017, the IPO has.
From the point of view of screen size, phablets has seen significant growth in recent years, which is for about a quarter of smartphone shipments in 2017.
"As mobile content continues to grow, smartphones have become the primary device for basic productivity and daily media consumption, and these feeds have the need for larger screens and more specs," said IPO.
The tablet continues to decline as its importance in the market decreased due to the lack of practical use and cannibalism of smartphones with larger screen sizes.
The traditional PC has grown by increasing purchases in connection with education and the growing traction of esports in the country, among other things.
"The smartphone market in the Philippines is set to bounce back in 2018 as the competition between the popular brands, which continues to strengthen its position, and to intensify local and small brands that continue to fight to remain relevant," said IDC. "We expect smartphone vendors to continue to send over phablets and equip their new models with compelling features such as dual cameras, sleek bezel and artificial intelligence on the device ' said IPO.
IDC has more than 1 100 analysts worldwide and offers global, regional and local expertise on technological and industrial trends and opportunities in over 110 countries.
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