According to International Data Corporation’s (IDC) Asia-Pacific Mobile Phone Tracker, the smartphone market might have reached its maturity and is now starting to decline. However, it’s still being revived.
Despite the numerous smartphone releases from different brands, it’s surprising to know that the industry is seeing a 10% year-on-year decline. As per IDC, there were only 4 million smartphones shipped during the second quarter of this year. This decrease in number was due to lower performance of local vendors because of the tougher competition brought by the Chinese players.
According to Jerome Dominguez, a market analyst at IDC, both OPPO and Vivo was behind the market shake-up. The brands’ aggressive marketing strategies and retailer support let them steal a large amount of market share. Hence, some local manufacturers who don’t have the marketing and merchandising bucks suffer from declining sales.
However, both Cherry Mobile and Cloudfone was still able to cope up. In fact, a local company was able to retain the number 1 spot.
Top 5 Smartphone Vendors in PH (Q2 2017)
1. Cherry Mobile – While most of its local competitors’ struggle, they were still able to nail this list. The brand’s vast product portfolio and beefed up marketing expenditures are the reason why they are still on top.
2. Samsung – This brand might have built their reputation thanks to the Galaxy S8, and the newly announced Galaxy Note 8. However, neither of those are the reason behind their success in the country. Samsung’s J series of budget smartphones was accountable for the majority of their shipments in Q1. And just like the Chinese, they also focused on both marketing and sales promoter incentives.
3. OPPO – it’s no denying how renowned this brand is today. We can see them almost anywhere — both in the digital and real world. But other than tons of marketing stunts, OPPO’s partnership with Home Credit also played a major role in their success. As per IDC, the opportunity to score their products at 0% installment plans made it more accessible to the mass market.
4. Cloudfone – The second, and last local vendor on this list. You might not see Cloudfone anyhwere else, but they sure focused their attention to basketball fans with a NBA-themed smartphone. And if you know Filipinos, we love nothing but basketball. But other than its partnership PBA and NBA, Cloudfone’s budget offerings also drove them to this list.
5. Vivo – With its whopping growth of 66% quarter-over-quarter, Vivo is really skyrocketing to the top. The brand also got a major boost thanks to the Stephen Curry endorsement and numerous roadshows in major urban cities around the country. The company is also replicating the strategy of OPPO which proved to be a success.
According to IDC, we can expect the smartphone market in the country to “stay subdued” in Q3. This is due to the increasing price of the components, weaker Philippine Peso value, and the expected exits of numerous smartphone vendors.