Total smartphone shipments in Southeast East Asia (SEA) region recorded nearly 28 million units in the second quarter of 2016 (Q2 2016), according to the latest IDC Asia/Pacific Quarterly Mobile Phone Tracker.
This reflects an 18.1 percent increase quarter-on-quarter and continued positive growth year-on-year of 6.5 percent, IDC said in a press release on 28 August 2016. 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," said Jensen Ooi, Market Analyst, Client Devices Research, IDC Asia/Pacific. "Smartphones priced at less than US$150 make up for 68 percent of total smartphone shipments in the second quarter of 2016."
In terms of market share, the overall smartphone market remains dominated by Samsung. It is followed by OPPO, True (a Thai operator), Asus and Lava.
Meanwhile, 3G handsets still make up majority of the market share, as they carry significantly lower price points as compared to 4G ones. This is a crucial factor, particularly for SEA consumers.
The slow uptake of 4G is largely attributed to the temporary rise of 3G devices in Thailand. This is because operators were in a rush to migrate subscribers from 2G to 3G, and they handed out large amounts of free or heavily discounted 3G handsets.
From the third quarter onwards, IDC expects an increase in demand for handsets with better specifications. While smartphones of less than US$150 will continue to make up the larger share of unit shipments, the demand for phones priced between US$150 and US$250 is expected to rise.
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