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TECNO, Infinix, Apple Fastest-growing Smartphone Brands in Southeast Asia

Southeast Asia’s smartphone shipment volumes declined 2% YoY but increased 3% QoQ in Q3 2023, signaling a recovery in the region’s smartphone demand.
The fastest-growing brands were TECNO (148%), Infinix (42%) and Apple (19%). All three Transsion brands collectively grew by 62% YoY in Q3 2023.
Samsung led the market with a 21% share, followed by Xiaomi (17%) and OPPO (15%).
Indonesia and Thailand saw flattish growth while other SEA countries like the Philippines, Malaysia and Vietnam declined YoY.
5G smartphones captured 36% of overall shipments in the region.

Jakarta, Hong Kong, London, Boston, Toronto, New Delhi, Beijing, Taipei, Seoul – November 9, 2023

Southeast Asia’s smartphone shipments declined 2% YoY but increased 3% QoQ in Q3 2023, signaling a recovery in the region’s smartphone demand, according to Counterpoint Research’s Southeast Asia Monthly Smartphone Channel Share Tracker. Stronger macroeconomic indicators, aggressive new OEM launches and aggressive promotions by OEMs and other platforms were the main growth contributors. Also, an uptick was seen in the replacement cycles of consumers opting for low-to-mid-tier smartphones. TECNO, Infinix and Apple emerged as the fastest-growing brands during the quarter.

Most key SEA countries like Indonesia, Malaysia, Philippines and Vietnam showed a double-digit decline in Q2 2023, but they improved in Q3 2023, hinting a relief for OEMs ahead of an important festive quarter. However, on an annual level, we foresee a YoY decline of about 8% for the region in 2023.

SEA remains an important market for the tech ecosystem due to its underpenetration in many areas, like online banking, e-wallet usage, online shopping and overall internet usage.

Source: Counterpoint Research Southeast Asia Monthly Smartphone Tracker, September 2023

Key country insights

Indonesia and Thailand saw flattish growth in smartphone shipments while other key SEA countries like the Philippines, Malaysia and Vietnam declined YoY.
In Thailand, the new government launched several initiatives, such as delaying debt payments, lowering energy prices and offering cash handouts, to ease the citizen’s cost of living. This brought immediate effect on commodities. Besides, in September, the government announced visa-free entry for tourists from China and Kazakhstan, bringing much relief to the country’s COVID-hit tourism industry.
In Indonesia, OEMs launched several new models in the middle and end of September. The new launches made up a big share of the overall shipments. During the quarter, Indonesians preferred to wait and watch when it came to spending money. The country is gearing up for its legislative and presidential election in February 2024. We expect Q4 2023 to see more smartphone sales due to aggressive offers.
Vietnam’s economy has picked up with its exports coming back on track. GDP grew 5.33% in Q3 2023, beating expectations. Foreign investment is expected to rise with Vietnam entering strategic partnerships during the prime minister’s visit to the US in September.
In the Philippines, the economy is showing signs of recovery. Consumer confidence has improved. Unemployment is a concern and essentials are still expensive for low-income families. Due to easing inflation, the coming months might see increased household spending. Overall, the household expenditure levels might take some time to recuperate, which might affect smartphone purchases.
In Malaysia, industrial manufacturing is still slowing down due to weaker demand for electrical and electronic products. Weaker exports have added to the decline in GDP as well. Malaysia’s 5G connectivity and penetration are improving now but the overall industry is being affected by China’s economic headwinds.

Source: Counterpoint Research Southeast Asia Monthly Smartphone Tracker, September 2023

Key OEM insights

Beating the trend, Apple’s shipments increased by 19% YoY during the quarter. Apple is still seeing a strong demand for the iPhone 13 and 14 series, adding to the demand for the newly launched 15 series.
Samsung led the market with a 21% share. Its A05 series has entered the market, adding to a strong overall A-series presence. Premium models like the Z Flip 5 and Z Fold 5 along with the S series are contributing as well. Promotions for the brand are centered around these premium models not only in countries like Thailand and Vietnam but also increasingly in countries like Indonesia and the Philippines. This is due to premium smartphone purchases by well-to-do consumers who are least affected by current headwinds. Samsung was the top brand in Indonesia, Thailand and Vietnam in Q3 2023.
Xiaomi’s shipments grew 7%. Its Redmi 12 series has been doing quite well across all key SEA countries. Its promotions and new model launches were also better than most other brands during Q3 2023, which helped the brand increase shipments. Xiaomi was the top brand in Malaysia in Q3.
Transsion witnessed the highest growth during the quarter. Infinix grew 42% YoY, TECNO 148% and itel witnessed a 17% growth. Infinix and TECNO are offering strong base specifications along with a varied model portfolio.
realme saw flat growth during Q3 2023. It was the top brand in the Philippines.

Commenting on brand dynamics in Q3 2023, Senior Analyst Glen Cardoza said, “Samsung and Xiaomi have been able to market their models in a much better manner across all key SEA countries, while sustaining new launches across price ranges, compared to the limited options from brands like OPPO and vivo. Upcoming brands are making a mark as well. Among them, the Transsion brands lead. TECNO and Infinix have either sustained or increased their new model launches, all in the entry to mid-tier segments. The three Transsion brands collectively grew 62% YoY in Q3 2023.”

While 5G penetration still has some way to go in countries like Indonesia, Vietnam and Malaysia, 5G is increasingly becoming a key consideration for consumers. Many consumers want their phones to be 5G ready. During Q3 2023, 5G smartphones captured 36% of overall shipments in the region.

The region’s key macroeconomic parameters like China-ASEAN trade, startup funding and foreign direct investment continue to see YoY declines. Add to this a recovering tourism industry. This has led to low GDP levels across most SEA countries. Price-conscious consumers have waited all year for the situation to get better, spending the least on discretionary items. On the positive side, digital transformation continues even as the industry recuperates slowly. This means that we can expect a better Q4 of 2023.

* Key Southeast Asia countries/markets include Indonesia, Thailand, Philippines, Vietnam and Malaysia.

Feel free to contact us at press@counterpointresearch.com for questions regarding our latest research and insights.

Background

Counterpoint Technology Market Research is a global research firm specializing in products in the TMT (technology, media and telecom) industry. It services major technology and financial firms with a mix of monthly reports, customized projects and detailed analyses of the mobile and technology markets. Its key analysts are seasoned experts in the high-tech industry.

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Vietnam’s Smartphone Market Drops 30% in Q1 2023, Biggest Q1 Decline Ever

Samsung led the market in Q1 2023 with 30% share, Apple was the only brand to grow YoY
>$600 price band captured record high 24% shipment share in Q1 2023
5G smartphone shipments increased 18% YoY in Q1 2023, despite overall fall in shipments
In the $200-$400 price segment, 5G shipments more than doubled YoY

Jakarta, Hong Kong, London, Boston, Toronto, New Delhi, Beijing, Taipei, Seoul – May 25, 2023

Vietnam’s smartphone market declined 30% YoY in Q1 2023, according to Counterpoint Research’s Vietnam Smartphone Channel Share Tracker, marking the industry’s worst Q1 decline ever. Poor macroeconomic conditions and weak consumer demand constrained the country’s smartphone market as people delayed their smartphone purchases during the period.

Vietnam’s GDP grew 3.3% in Q1 2023, one of its lowest numbers in recent years. Investment into the country declined as FDI volumes were reduced. Citing poor business conditions, retailers had to scale back their expansion plans and re-evaluate their business strategies. Retail stores operated for fewer hours, which reduced the employees’ working hours and their incomes as well. Footfall in the retail stores was also quite low after Vietnam’s Tết festival in January.

OEMs initially misread the demand, leading to inventory buildup in the channels, after which retailers tried to push the smartphones at discounted prices to clear the inventory. All the top OEMs except Apple witnessed a YoY decline in shipments in Q1 2023.

Senior Analyst Glen Cardoza said, “The demanding situation in the Vietnam smartphone market is unlikely to be resolved in Q2 2023. It will take some time for the smartphone market to recover in light of the difficulties that the economy has suffered. Vietnam, being one of the top global exporters of smartphones, will also look for the global economy to stabilize. When the situation starts to improve by the end of 2023, the market may benefit from the pent-up demand, especially in the lower-price segments.”

Samsung was the top brand in Q1 2023 with a 30% market share, despite a 32% YoY fall in in shipments during the quarter. Samsung ranked foremost because if its better portfolio and competitive models. The Galaxy A04 was the top model in the <$200 price segment and was very popular among consumers. In the $200-$400 price segment as well, Samsung captured seven of the top 10 spots in Q1 2023, led by the Galaxy A14 5G. These two were the top price bands in Vietnam during the period with a combined shipment share of 71%. This dominance of lower price bands and customers’ preference towards global brands rather than Chinese brands helped Samsung maintain its leadership position in the market.

For OPPO, the A17 series has been popular since its launch in Q4 2022. The OPPO A17 and A17k together accounted for 24% of all OPPO shipments in Q1 2023. With an increasing share in the >$600 price band, OPPO launched the Find N2 Flip in Vietnam as well. The model was available at a discount of up to $200 on pre-booking to combat the ever-increasing pricing competition in the higher-price segment.

Apple climbed to third place in Q1 2023. There was high demand for the iPhone 14 Pro series early in the quarter, which eventually fizzled out. Apple unexpectedly cut iPhone prices during the quarter to boost demand and clear the high inventory in channels. The price of the iPhone 14 Pro Max was lowered by an average of 12% in Q1 2023 compared with its launch price. Due to the reduced iPhone prices, Apple shipments increased 12% YoY in Q1 2023. This helped the >$600 price band capture a 24% share of the market in Q1 2023, compared to just 17% in Q1 2022.

Meanwhile, Xiaomi and vivo faced a difficult Q1 2023, declining 46% YoY and 52% YoY, respectively. Demand in the <$200 price band declined in Q1 2023 with shipments falling 38% YoY. The two brands each lost market share during the quarter as both have high exposure to this price band.

Online shipments’ share fell to 15% in Q1 2023 from 17% in Q4 2022, as promotional activities on online channels were reduced after the festive period. With offline retail chains offering discounts and price cuts on premium devices as well, e-commerce platforms struggled to attract customers.

The Vietnamese government considers 5G connectivity as a crucial factor in the pursuit of digital transformation. It aims to have 100% of the population’s devices connected to a 5G network by 2030. 5G smartphone shipments are on the rise, climbing 18% YoY in Q1 2023. Although shipments of 5G smartphones in the below $200 retail price segment are yet to pick up the pace, 5G smartphone shipments in the $200-$400 price band doubled in Q1 2023 from that in the year-ago quarter.

Outlook:

Vietnam has been one of the worst affected countries by the low consumer demand and inventory pileup in Southeast Asia. Consequently, the recovery time for the country’s smartphone market is also likely to be longer. Vietnam’s smartphone market is expected to remain flat in 2023 compared with the year-ago period. Once the Vietnamese government commercializes 5G, new opportunities will arise in Vietnam from a manufacturing and investment perspective and will be one of the main drivers of the country’s economic revival.

Analyst Contacts

Glen Cardoza

Shubham Nimkar

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Apple Shines in a Declining Southeast Asia Smartphone Market

Smartphone shipments in Southeast Asia’s five key markets* declined 13% YoY in Q1 2023.
Apple’s shipments increased by 18% YoY during the same period.
Infinix witnessed a 41% increase as the brand grew across SEA markets.
While mid-to-high-end ($201-$600) ranges suffered the most, the >$600 range shipments increased by 4%.

Jakarta, Hong Kong, London, Boston, Toronto, New Delhi, Beijing, Taipei, Seoul – May 15, 2023

Smartphone shipments in Southeast Asia’s five key countries (Indonesia, Thailand, Philippines, Vietnam and Malaysia) fell 13% YoY due to low demand and a seasonal drop, according to Counterpoint Research’s Southeast Asia Monthly Smartphone Channel Share Tracker.

All key SEA countries saw a decline in Q1 2023 but some more than others. Countries like Vietnam received relatively more shipments in Q4 2022 and so OEMs felt the need to reduce volumes in Q1 2023. Consumer sentiment has not completely revived in Vietnam. Factors like a 10% fall in Samsung’s production, seasonally low smartphone demand after Q4 2022, and reduced revenues for OEMs and operators were also among the driving factors. Indonesia and Thailand did comparatively well than the other countries as demand started improving in March 2023.

Source: Counterpoint Research Southeast Asia Monthly Smartphone Tracker

All key SEA countries are coming out of the geopolitical effects from last year while still reeling under some inflation effects. For instance, the Philippines suffered high inflation at the start of this year. However, operators continue to remain aggressive on 5G development and partnerships with tech companies. The industry has resumed its earlier levels of advancement as foreign investments are again entering big economies like Indonesia and Malaysia. There are collaborations happening on the financial services front as well. For example, OPPO in Indonesia is partnering with banks to provide banking services while AIS, the leading operator in Thailand, has partnered with Bangkok Bank to provide financial services on digital platforms. Consumers are not exactly feeling the improvements on the ground though. Most smartphone purchases are being delayed.

Source: Counterpoint Research Southeast Asia Monthly Smartphone Tracker

Vietnam is a growing Apple iPhone market. The demand for the iPhone 13 and 14 series was good in Q1 2023. Indonesia has seen growth in iPhone shipments as well. Overall, iPhone shipments grew 18% YoY in Q1 2023.

Infinix is the official smartphone partner for Mobile Legends professional league in the Philippines. Infinix has improved on promoting itself as a gaming brand in the region. Overall, though Infinix’s volumes are not on a par with the top brands, it continues to grow in the region. The brand grew 41% in Q1 2023.

While certain brands have been in focus at the start of this year, the price range share favored two consumer groups in Q1 2023. <$200 smartphones witnessed a 4% YoY growth despite an overall decline in volumes. Since entry-level phone shipments had been consistently low, pent-up demand motivated higher shipments in Q1 2023. However, not all countries saw a spike in low-end smartphone demand. OEMs in Vietnam were still looking to push these volumes. The Philippines’ low-income families are reeling under high tax and inflationary issues, restricting low-end smartphone purchases. Premium-end (>$600) smartphone shipments continued to rise and saw 4% YoY growth. Mid-to-high-end ($201-$600) smartphone shipments suffered the most across the region.

Commenting on the SEA economies in 2023, Senior Analyst Glen Cardoza said, “Southeast Asia is at a stage where different consumer types are behaving in a different manner. Low-end smartphone buyers are recovering but they are not just there yet. Mid-to-high-end smartphone buyers are holding on to their wallets and extending the ownership of their phones, while high-to-premium smartphone buyers are unaffected by the economics of the situation. These consumers are going out and choosing to buy the S series, foldables and iPhones. While 5G is becoming a norm, operators are coming out with creative packages and providing options for all types of smartphones. The coming months are likely to see a bit more improvement in consumer sentiment while governments make sure that their countries remain largely unaffected by global macro issues.”

The Vietnamese government is looking to commercialize 5G in the country this year. This will facilitate a new level of manufacturing and consumer usage if done earlier than later. While the Malaysian government and industry work on 5G commercialization and the terms for it, consumers are already equipped with 5G smartphones.

With an increase in tourism in SEA countries earlier in the year, there is a chance that tourism business and revenue will increase this year. Countries like Thailand are also concentrating on eco-tourism initiatives that focus on sustainability, all through smartphones. All these developments are likely to spell normalcy for the public, leading to a likely improvement in consumer sentiment in the coming quarters.

* Key Southeast Asia countries/markets include Indonesia, Thailand, Philippines, Vietnam and Malaysia.

Feel free to contact us at press@counterpointresearch.com for questions regarding our latest research and insights.

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Electric Vehicles Gain Ground in Southeast Asia; Thailand Dominates Volumes

Thailand led the region’s passenger EV sales in 2022 with a 58% share.
Nearly two in three EVs sold in 2022 were BEVs.
Wuling’s newest model Air EV was the region’s bestseller.

New Delhi, London, San Diego, Buenos Aires, Hong Kong, Beijing, Seoul – March 31, 2023

Passenger electric vehicle (EV*) sales** in Southeast Asia (SEA^#) accounted for just under 2% of the region’s total passenger vehicle sales in 2022, according to the latest research from Counterpoint’s Global Passenger Electric Vehicle Model Sales Tracker. Thailand was the most advanced, accounting for 58% of the region’s EV sales, followed by Indonesia and Vietnam. Thailand’s government has been pushing EV sales through demand-side incentives and corporate income tax incentives for EV manufacturers.

Wuling’s Air EV was the best-selling model across the region in 2022, being one of the most affordable EV options. In terms of automotive groups, Vingroup led the SEA EV sales, closely followed by Wuling (part of SAIC-GM-Wuling group) and Volvo (Geely Holdings subsidiary). Battery EVs (BEVs) represented 64.6% of the total EV sales while plug-in hybrid EVs (PHEVs) constituted the rest.

Commenting on the market dynamics, Research Analyst Abhilash Gupta said, “Passenger EV demand is increasing gradually across the SEA region but sales are tiny compared to global EV sales, constituting just 0.5% of the global total for 2022. However, as geopolitical tensions are rising between China and the West, SEA is becoming an attractive option for Chinese auto manufacturers looking to expand abroad. Therefore, we can expect to see more production plants in SEA in the longer term, which will help boost EV sales. Thailand has the largest auto manufacturing sector in SEA. It is aiming to leverage its manufacturing expertise to attract automakers to produce and sell EVs there. Indonesia and Vietnam have the advantage of mineral resources, which gives them an edge over others in the region. The SEA countries have set lofty EV targets and have introduced many incentives to promote EV adoption among consumers and to attract EV manufacturers to set up bases.”

Source: Counterpoint’s Global Passenger Electric Vehicle Model Sales Tracker, Q4 2022

Commenting on the market outlook, Senior Analyst Soumen Mandal said, “Although EVs are currently a niche market in SEA, we do expect their sales to double in 2023. However, it will be difficult for the SEA countries to achieve their EV targets and increase the share of renewables in the electricity grid at the same time.

SEA countries have the opportunity to display their manufacturing capabilities and grow, given the interest of many international auto manufacturers to invest in the region. Those that enter the market early will have an edge, allowing them to secure a substantial share of the market. The SEA region could adopt the approaches taken by China and Europe, which provide incentives based on CO₂ emission levels. Doing so would encourage both consumers and manufacturers to shift towards more environment-friendly vehicles.”

*For EVs, we consider only BEVs and PHEVs. This study does not include hybrid EVs and fuel cell vehicles (FCVs).

**Sales refer to wholesale figures, i.e., deliveries from factories by the respective brands/companies.

^#SEA includes Indonesia, Malaysia, Myanmar, Philippines, Singapore, Thailand and Vietnam.

The comprehensive and in-depth ‘Global Passenger Electric Vehicle Sales Tracker, Q1 2018-Q4 2022’ is now available for purchase at report.counterpointresearch.com.

Feel free to reach us at press@counterpointresearch.com for questions regarding our latest research and insights.

Background

Counterpoint Technology Market Research is a global research firm specializing in products in the TMT (technology, media, and telecom) industry. It services major technology and financial firms with a mix of monthly reports, customized projects, and detailed analyses of the mobile and technology markets. Its key analysts are seasoned experts in the high-tech industry.

Analyst Contacts

Abhilash Gupta

Soumen Mandal

Brady Wang

Peter Richardson

Counterpoint Research

press@counterpointresearch.com

Related Posts

Global Smart Hardware Manufacturing Diversification Going Steady and Strong

Zhengzhou Foxconn is gradually restoring production after COVID-triggered disruptions. The iPhone 14 Pro series is still facing long wait times.
Apple started its manufacturing diversification before COVID-19.
Supply chain vendors are expanding production sites to optimize cost and shipment benefits.
Key manufacturing enterprises are accelerating their global diversification to take advantage of incentive policies from different regions.

Apple Manufacturing Suppliers Changes

Source: Counterpoint Manufacturing Research

Manufacturing shift

Against this backdrop, the global manufacturing industry chain is steadily shifting outside China to avoid the risk of relying on a single manufacturing base. As the main iPhone manufacturer, Foxconn is planning to shift up to 30% of its capacity to India, Vietnam and Brazil. Besides, the company is planning to expand automotive manufacturing in Europe and Mexico. Foxconn, which is the world’s biggest EMS (electronics manufacturing services) provider, had already developed rather high production capacities in India and Vietnam before the recent disruption at its Zhengzhou plant. It has no intention of expanding its capacity further. Now, the challenge for Foxconn is how to better utilize its current capacity and balance the cost and risks.

Source: Counterpoint Manufacturing Research

Vietnam, India emerging as manufacturing centers

Vietnam and India are emerging as smart device manufacturing centers. Vietnam has benefited a lot in manufacturing by attracting foreign investments. As of September 2022, there were 21 Apple suppliers in Vietnam. Although Vietnam’s labor costs are lower than in China and its population is younger than China’s, the limiting factor for Vietnam’s manufacturing development is its population size. When establishing their manufacturing facility in a country, the manufacturers and component suppliers also consider the local demand. Vietnam’s population in 2021 was around 98 million, less than 8% of China’s.

India has almost the same population size as China’s, and a higher birth rate. Therefore, many local and international consumer electronics brands regard India as an important strategic market. Besides, with the continuous improvement and maturing of production technology combined with the government’s support policies, many smart hardware products and components have gradually landed in India’s local production. According to Counterpoint’s Made in India research, smartphones manufactured in India grew 16% YoY in Q2 2022 (April-June) to reach over 44 million units.

Source: Counterpoint Made in India Research, Q2 2022

Can India replace China as a manufacturing base?

Most supply chain vendors bear high operational costs, especially their production lines. They have to consider the market scale, sustainability of the income revenue, local infrastructure stage, local policies and incentive schemes, and environment for foreign investments. It will be difficult for India to replace China as a manufacturing center in the short term. Infrastructure, logistics, and upstream and downstream industrial chains are the limiting factors here. However, thanks to the Production-Linked Incentive (PLI) scheme, several manufacturing companies have expanded their investments in India, driving the country’s manufacturing industry development. India’s department of telecommunications has extended the scheme for telecom by one year and offered an incentive package for 4%-7% of sales over five years. The scheme requires an investment threshold of INR 100 million ($1.2 million) for micro, small and medium enterprises (MSMEs) and INR 10 billion ($120 million) for non-MSMEs, excluding land and building costs. Led by Foxconn and Pegatron, companies have already invested in factories, production lines, relatively advanced manufacturing processes, and personnel training in India.

Apple works to optimize, modularize production

Apple has continued to optimize and improve product design this year with a focus on production modularization and ease of maintenance. The iPhone14 and iPhone14 Plus reflect this effort, with the difficulty of production reducing significantly. Now, new product introduction (NPI) can be carried out faster from overseas factories than before. Now it is possible for the plants in India to produce the iPhone 14 almost simultaneously with the plants in China.

Local production in other countries

Meanwhile, local production will continue to grow in countries like Indonesia and Brazil. For example, leading smartphone and PC OEMs have built local factories for local demand or assigned local production to their manufacturing partners like Flex, Foxconn and Pegatron. The high tariff on finished goods imports is the key driver. However, with demand growth and higher value shift, the local production capability becomes an advantage for these OEMs. Mexico will benefit from this trend due to its geographical location near the US. Smart device and electric vehicle manufacturing can be the next wave in Mexico.

China enterprises’ stance

Many of China’s manufacturing enterprises are investing in overseas diversification to benefit from local policies, even though China has a more comprehensive industrial chain. Top smartphone ODMs like Huaqin, Wingtech and Longcheer have already established factories in India and Southeast Asia. Smart wearable device manufacturers such as Goertek, AAC, Luxshare, Cosonic and Yingtong have also set up manufacturing centers in Southeast Asia to keep closer contact with their clients.

Whether to reduce risks, take advantage of lower labor costs, or benefit from incentives, the diversification of global manufacturing from China is steadily underway.

Feel free to contact us at press@counterpointresearch.com for questions regarding our in-depth research and insights.

You can also visit our Data Section (updated quarterly) to view the smartphone market share for World, USA, China and India.

Vietnam’s Q3 2022 Smartphone Shipments Up 34% YoY on Increased Economic Activity

Samsung led the market followed by OPPO and Xiaomi.
Apple shipments surged 139% YoY.
$200-$400 price band shipments grew 159% YoY.
Online channel shipments increased 67% YoY.

New Delhi, Jakarta, London, Boston, Toronto, Beijing, Taipei, Seoul – December 1, 2022

Vietnam’s smartphone shipments increased 34% YoY in Q3 2022, according to Counterpoint’s latest Monthly Vietnam Smartphone Channel Share Tracker. The results highlight the strong economic growth in the country during the quarter, driven by the increasing manufacturing activity and improving consumer sentiment, despite moderate inflationary pressures. The launch of new smartphone models along with increasing demand for budget and high-end models were also among the key factors responsible for the quarterly growth.

Apple’s shipments surged 139% YoY in Q3 2022 as more consumers in Vietnam bought premium smartphones. The iPhone 11, iPhone 13 and iPhone 13 Pro Max were among the most preferred models during the quarter. Apple distributors are opening more official stores in Vietnam, which is helping the brand reach more customers.

Shipments of major Chinese players like Xiaomi, realme and OPPO also grew during the quarter. Xiaomi was boosted by the POCO C40 series as Vietnam was the first country where the model was released. realme was driven by its C-series smartphones, while OPPO was helped by the A57 and the newly launched Reno8 series.

Source: Counterpoint Monthly Vietnam Channel Share Tracker, Q3 2022

Q3 2022 shipments in the <$200 retail price band remained flat YoY due to weaker shipments from Samsung. The segment was mostly driven by Xiaomi and realme. The $200-$400 band saw the biggest growth during the quarter as demand for mid-budget smartphones increased in the country. Brands have been launching most of their newer models in this range. In Q3, some of the popular models in the price segment were OPPO’s Reno8 4G and A96, Redmi’s Note 11 and vivo’s Y22s. Meanwhile, the strong growth in the $400-$600 price band was driven by Apple. Vietnam is one of the fastest growing markets for iPhones.

Commenting on the price range, Research Analyst Akash Jatwala said, “Shipments in the >$600 segment grew 17% YoY in Q3 2022 driven by Apple and Samsung. Vietnam has increasingly started to prefer premium smartphones and among them the iPhone 13 series and the Samsung Galaxy S22 are the most popular.”

5G smartphone shipments jumped 129% YoY in Q3 2022 and accounted for 34% of the overall shipments during the quarter as brands launched more of such models. 5G is not present in Vietnam yet but the technology might be commercially launched here in 2023, which could further boost economic activity in the country. However, there is no news regarding a spectrum auction and telcos are only just conducting trials with vendors in major provinces.

Online channels grew 67% YoY in Q3 2022 and contributed to 18% of Vietnam’s total shipments as customers were attracted by discounts, cashbacks and easier financing. Pre-orders along with replacement options and bundling of devices with TWS at a discounted price were some of the other appealing promotions from online channels.

On the issue of smartphone manufacturing, OEMs are increasing investments in the country and looking into newer areas to diversify. Apple is set to start manufacturing iPads, Apple Watches and MacBooks in Vietnam, and Google is also planning the same for its Pixel smartphones. Manufacturing activities have helped Vietnam in creating jobs and increasing economic growth, which in turn has increased consumers’ buying power. As OEMs are increasingly preferring Vietnam as a manufacturing hub, more companies are likely to expand their presence in the country, which in turn will foster economic growth.

Outlook

For Q4 2022, we are optimistic about the Vietnamese smartphone market. We expect shipments to grow in the final quarter. This is based on Vietnam’s reported growth in GDP during Q3 2022, an increase in manufacturing activity and a moderate rise in inflation.

In Q4 2022, smartphone shipments in Vietnam are likely to receive a boost from the iPhone 14 series and new model launches from various brands across different price ranges. Increasing consumer spending in the lead up to the Lunar New Year will also help in driving shipments.

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Analyst Contacts

Akash Jatwala

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Vietnam’s Apple Shipments More Than Doubled in Q2 2022

Vietnam’s Q2 2022 smartphone shipments declined 1% YoY to 3.2 million units.
Premium smartphones’ (>$400) shipments saw a growth of 75% YoY.
Among the top OEMs, Apple’s shipments increased 115% YoY.
Most major Chinese brands saw a decline in their shipments.
Offline channels picked up with brands opening more retail stores.

Jakarta, London, Boston, Toronto, New Delhi, Beijing, Taipei, Seoul – August 23, 2022

Vietnam’s Q2 2022 smartphone shipments remained nearly flat, falling 1% YoY to 3.2 million units, according to Counterpoint’s latest Monthly Vietnam Smartphone Channel Share Tracker. The numbers reflect the country’s macroeconomic stability, with moderate inflationary pressure, and increased customer spending due to its markets regaining normalcy. Increasing exports amid geopolitical conflicts and COVID-19 lockdowns in China also helped the economy. New launches, along with customer preference for premium models, played a pivotal role in the Q2 smartphone shipments.

Vietnam Smartphone Shipment Share by Key OEM, Q2 2022

Source: Counterpoint Research Monthly Vietnam Channel Share Tracker, Q2 2022

Demand for budget devices was moderate during the quarter. High-end smartphone shipments saw big growth along with gaming-focused ones.

Premium Segment (>$400) Smartphone Shipment Growth, Q2 2021 vs Q2 2022

Source: Counterpoint Research Monthly Vietnam Channel Share Tracker, Q2 2022

Samsung’s growth was nearly flat at 3% YoY as it was struggling with inventories and had to cut production at its Vietnam factory. Samsung launched low-to-mid-end devices in its A and M series, which helped the brand maintain its market share. Its high-end S series models were among the bestsellers in the premium category during the quarter.

OPPO was the only Chinese player to see positive growth of 25% YoY as its newly launched mid-end models fared well in the market, whereas other players like Xiaomi, vivo and realme saw a YoY decline in their shipments as they were struggling with higher inventories.

Apple, at 115% YoY, saw the biggest growth during the quarter with Vietnamese people preferring premium smartphones. Apple is increasing its stores in Vietnam via official distributors, which is helping the brand to expand its customer reach.

Vietnam’s smartphone market is dominated by offline channels. Therefore, OEMs are opening more retail stores across the country. Major Vietnamese distributors are opening mono-stores of major brands, which are driving most of the sales, with Samsung and Apple leading the chart. Research Analyst Akash Jatwala said, “The premium price band (>$400) grew around 75% YoY driven by the iPhone 11, iPhone 13 Pro Max and Galaxy S series. Vietnam’s people are passionate about premium smartphones. Besides, Apple has recently reduced the prices of older iPhone models in Vietnam, making them among the cheapest in the world. Vietnam is becoming one of the major markets for Apple in Southeast Asia.”

On the smartphone manufacturing side, activities are increasing and OEMs are raising their investments in the country. Xiaomi has started manufacturing smartphones in Vietnam in partnership with DBG Technology. Samsung, which makes the bulk of its smartphones in Vietnam, plans to increase its investment in the country while expanding the supply chain.

For the second half of 2022, we have moderate expectations for the Vietnamese smartphone market. We expect the last quarter to see shipment growth. At present, Vietnam is cushioned from major macro issues and there is not much inflationary pressure, even as manufacturing activities are increasing. But in the second half, the economy may be affected by macro issues to some extent. Manufacturing activities may feel the impact of raw material price increases due to global inflationary pressures, with consumer preference shifting to other essentials. We expect the local demand to revive during the last quarter, driven by the Lunar New Year consumer spending and Apple’s new iPhone launch.

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Akash Jatwala

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Key Southeast Asian Countries’ Smartphone Shipments Cross Pre-pandemic Levels in 2021; Xiaomi, realme, Apple Achieve Highest Ever Volumes

Key Southeast Asian countries’ (Indonesia, Thailand, Philippines and Vietnam) smartphone shipments were highest ever in a calendar year in 2021, reaching 96 million units and growing 5% YoY.
Xiaomi, realme and Apple shipped their highest ever volumes in these countries.
Xiaomi had a strong H1 2021 and even though it had a sluggish H2, the brand grew 17% YoY in 2021.
Apple saw its highest ever growth of 68% YoY in 2021 due to the sales of iPhone 11 and iPhone 12 series and the launch of iPhone 13 series.
realme grew 10% YoY in 2021 driven by the increase in shipments in Thailand and Philippines.
5G smartphone share was 18% in 2021, compared to 3% in 2020.

Hong Kong, London, Boston, Toronto, New Delhi, Beijing, Taipei, Seoul – February 10, 2022

Despite multiple COVID-19 resurgences, offline channel disruptions due to restrictions and sustained component shortages affecting OEMs, key SEA countries (Indonesia, Thailand, Philippines and Vietnam) saw a 5% YoY growth in smartphone shipments in 2021, according to Counterpoint Research’s SEA Monthly Smartphone Channel Share Tracker. At 96 million units, the 2021 shipments were the highest ever for a calendar year and more than the pre-pandemic levels. Q4 2021 volumes, however, remained flat due to supply issues for most OEMs.

Commenting on the region’s smartphone market, Senior Analyst Glen Cardoza said, “Most of the SEA countries saw a COVID-19 resurgence more than once in 2021. Governments and industry players were eager to achieve normalcy in business, but social and economic activities suffered, which did not let the smartphone industry pick up in the second half. However, Samsung was able to resolve shipment issues encountered mid-year to revive its sales and lead in the region. Xiaomi came up strong in Q1 and Q2, which solidified its base in most of the key economies, but it suffered more than others in H2 2021 due to supply constraints. OPPO and vivo continued their launches across price tiers and accelerated their marketing campaigns towards the end of the year. Brands like realme and Infinix brought in affordable models to target users upgrading from entry-level devices.”

Source: Counterpoint Research Southeast Asia Monthly Smartphone Channel Share Tracker, December 2021

On ASPs (Average selling price) and 5G, Cardoza said, “In 2020, more than 55% of the shipments in key SEA countries were for smartphones under the $150 price point. In 2021, this bracket held about 38% share. More consumers are opting for smartphones in the $151-$250 bracket. Besides, 5G was mostly represented by just the top 2-3 brands in 2020. We now see the top five OEMs not only launching 5G models but also actively reducing their ASPs and working with operators to further the adoption of 5G in SEA.”

Commenting on the online-offline channel dynamics, Research Director Tarun Pathak said, “Online share of shipments does not seem to be growing consistently across different countries in the region. Thailand and Philippines saw growth towards the end of H2 2021 while Indonesia and Vietnam still have some infrastructural and mindset miles to cover. To capture a larger mind space through offline channels, most brands are making sure that retail partnerships are well maintained to grow networks across countries. A careful balance between online and offline channel shipments is being worked out by brands. This is being complemented by their tie-ups with operators and retailers.”

Source: Counterpoint Research Southeast Asia Monthly Smartphone Channel Share Tracker, December 2021

Market Summary:

Samsung saw shipment challenges mid-year in 2021 but recuperated to lead in market share. Its manufacturing facilities in Vietnam got back to normalcy towards Q4 and the brand made sure that marketing campaigns were in focus for all its new launches. A series was key to Samsung’s volumes in the year.
Chinese brands grew more in 2021 and captured 71% of the market, led mostly by OPPO, Xiaomi, vivo, realme and Infinix.
OPPO’s strong hold over the SEA continued in 2021 with consistent demand for its Reno series and A series smartphones. Consumers responded to its strong promotions and offers.
vivo’s Y series continued to perform well through 2021. The brand’s strong offline network strategy has helped over time. Marketing campaigns and endorsements have helped in increasing its exposure in these markets.
Infinix, which was one of the highest gainers for the year, shows future promise but its volumes are comparatively still low.
Even though there was a brief slowdown in Apple shipments in H2 2021, the brand sold more of the 11 and 12 series iPhones at the start of the year and towards the end as well. Thailand and Vietnam came up as the drivers for this premium brand.
As opposed to 8% 5G smartphone share in Q4 2020, 25% 5G share was seen in Q4 2021. This is bound to grow much higher in 2022.
MediaTek, which led in chipsets in the region in 2020, extended this lead in 2021 by taking share from Qualcomm and other brands. Brands like Unisoc hold promise in reducing BoM cost for low-tier smartphones.
Shopee continued to lead and increase its share in online smartphone shipments in the region in 2021. While Lazada tried to recapture its sales, other e-commerce platforms like JD (Indonesia and Thailand), Tokopedia (Indonesia) and Bukalapak (Indonesia) slowly improved their festive sales, especially in Q4 2021.
The key Southeast Asian countries showed resilience in 2021 despite multiple challenges. 2022 will see these countries increase their economic activities, which should, in turn, improve job situation, tourism and subsequently consumer buying sentiment. We are looking at a decent 5% YoY growth in the region’s smartphone shipments in 2022. 5G advancement, operator competition and consumer smartphone upgrades should make this possible.

Note: OPPO includes OnePlus shipments in this publication, Xiaomi includes POCO

Feel free to contact us at press@counterpointresearch.com for questions regarding our latest research and insights.

Background:

Analyst Contacts:

Glen Cardoza

Tarun Pathak

Follow Counterpoint Research
press(at)counterpointresearch.com

Vietnam Smartphone Shipments Double QoQ in Q4 2021, Up 15% YoY; Samsung Retains Top Spot

Vietnam’s smartphone shipments soared 104% QoQ in Q4 2021.
Samsung retained the top spot, capturing 28% share, followed by vivo (18%) and OPPO(17%).
With its iPhone 13, Apple surpassed Xiaomi to rank fourth, its best ever show in Vietnam.
For the full year of 2021, smartphone shipments increased 7% YoY.

Beijing, Seoul, Taipei, London, Boston, Toronto, New Delhi, Hong Kong – February 10, 2022

Vietnam’s smartphone shipments increased 15% YoY and 104% QoQ in Q4 2021, according to Counterpoint Research’s Monthly Vietnam Channel Share Tracker. After crossing the post-pandemic phase of pent-up demand, smartphones remained in high demand throughout the year, despite the market facing many difficulties, including macroeconomic worries, supply chain issues and the emergence of new COVID-19 variants. The year 2021 also saw Samsung and Apple registering their highest ever shipments in Vietnam.

Top OEMs’ Market Share in Vietnam, Q4 2020 vs Q4 2021

Source: Counterpoint Research’s Monthly Vietnam Channel Share Tracker
Notes: Xiaomi includes POCO and Redmi; OPPO includes OnePlus; Figures may not add up to 100% due to rounding.

Commenting on the quarterly performance, Senior Research Analyst Ivan Lam said, “Vietnam’s smartphone market has been dominated by offline channels. COVID-19 forced the government to impose multiple lockdowns, which hugely impacted the mobile phone distribution chain. As a result, shipments in Q3 2021 reached their lowest point in 2021. A few key positive factors drove up the numbers in Q4 2021. First, increasing vaccination rates helped offline channels move towards normalcy. Second, Apple’s iPhone 13 and other new launches, some pent-up demand and the approaching Vietnamese Lunar New Year stimulated purchase activities. Third, Samsung and Chinese brands managed to resume their supply and logistics activities in Vietnam. Lastly, the country’s major cities such as Ho Chi Minh City released guidelines that required people entering these cities to show a QR code from a mobile app to prove their vaccination status or recovery from COVID-19. This also pushed people to switch to a smartphone or an upgrade.”

Apple was the fastest growing brand in Q4 2021 in YoY terms. With a hair’s breadth, it surpassed Xiaomi to capture the fourth highest market share during the quarter. Lam added, “Apple enjoys a good place among Vietnamese consumers. In 2021, Apple enhanced its distribution strategy in Vietnam. It pushed online sales through Lazada Apple Flagship Stores and boosted “mini Apple Stores” by working with retailers, although there are already Apple Zones in Thegiodidong stores and F.Studio in the FPT shops system. Also, in Vietnam, 5G smartphone penetration is increasing gradually, supporting iPhone 13 sales.”

Vietnam Smartphone Shipment Share, 2020 vs 2021

Source: Counterpoint Research’s Monthly Vietnam Channel Share Tracker
Notes: Xiaomi includes POCO and Redmi; OPPO includes OnePlus; Figures may not add up to 100% due to rounding.

Vietnam’s smartphone shipments grew 7% YoY in 2021. Research Director Tarun Pathak said, “Vietnam is one of the most active consumer electronics markets in Southeast Asia, as well as one of the Asian countries with highest internet penetration. Although COVID-19 continued to disrupt the market, the demand was always there. We expect this rebound to continue in 2022.”

Apple showed the highest YoY growth in 2021 at 119%, followed by vivo at 24% and Xiaomi at 19%. Although OPPO (including OnePlus) ranked second in terms of market share in 2021, its growth declined 6% YoY during the year. Senior Research Analyst Glen Cardoza said, “OPPO was hugely impacted by the COVID-19 lockdowns in Q2 and Q3 because its main strength is offline channels. Also, OPPO experienced a shortage of 4G SoCs. However, it bounced back in Q4, showing 88% QoQ growth. We see OPPO showing stable performance in 2022.”

Online channels made up 15% of the total shipments in 2021, growing 8% YoY. It’s not a big jump because the country’s logistics systems and digital payment ecosystem are still in the process of being developed.

Despite all difficulties, Vietnam’s smartphone market is expected to continue to grow in 2022 and be one of the most competitive markets in Southeast Asia.

Please reach out to press (at) counterpointresearch.com for press comments and enquiries.

You can also visit our Data Section (updated quarterly) to view the smartphone market share for World, US, China and India.

Background

Analyst Contacts:

Ivan Lam

Glen Cardoza

Tarun Pathak

Follow Counterpoint Research

Vietnam Offline Channels Successfully Embracing Online

Vietnam’s mobile phone market is dominated by offline distribution channels. However, responding to the changing times, offline channels have been trying to embrace the online mode, with some of them achieving big success.

Hanoi, the country’s capital, opened in late September after the COVID-19 lockdowns, while Ho Chi Minh City (commonly known as Saigon), the country’s largest city, opened a little bit later. While hugely impacting the economy, the lockdowns also pushed online sales to new heights. Retailers like Mobile World Group (MWG), which owns the highest number of offline shops in Vietnam, registered record online sales. According to an August financial release, MWG’s online revenue contributed 17.5% of its total revenue with 17% YoY growth, undoubtedly a big achievement for the offline channel giant. Thegiodidong (TGDD) and Dien May Xanh (DMX), the MWG chains selling mobile phones and consumer electronics, together accounted for 51.5% of the total group revenue.

TGDD, which means “mobile world” in English, built its standing in the market as a chain of stores selling mobile phones and related 3C products.

In July this year, COVID-19 started spreading rapidly in Vietnam. More than 70% of the offline stores and shops in the country had to be closed due to the restrictions. The situation worsened in August and September. In Saigon, the military had to be called in to enforce social distancing. Only essential stores and deliverymen were allowed to function in the key cities.

With offline channels dominating Vietnam’s mobile phone retail, the COVID-19 impact was severely felt by major OEMs like Samsung, OPPO and vivo, which had been mainly focusing on building offline retail in the country. Even Xiaomi, an internet brand, had to rely on national distributors to cover main offline channels. The lockdown surely made an impact on these leading brands’ distribution strategies.

In such a situation, offline retailers like TGDD and DMX, which had been strategically investing in online business for a while, reaped unexpected benefits. TGDD and DMX’s website experience is as good as pure e-commerce players in the mobile phone and consumer electronics domain. Apart from TGDD, there are offline store chains like Viettel and FPTShops which have also been investing in online stores at different levels.

With the easing of social distancing norms in many provinces and cities in Vietnam from the second half of September, retail businesses are expected to recover. However, even after regaining normalcy, the shift towards online will not stop.

Not just Vietnam, the whole of Southeast Asian mobile phone and consumer electronics market is heavily dependent on offline channels. But with the pandemic, the region’s leading e-commerce platforms in consumer electronics, like Lazada, Shopee and Tiki, have been reporting robust numbers. On the other hand, offline retail chains have been facing the most painful challenges. Online and offline channel constructions are totally two different business models, requiring two sets of strategies, teams and finance models. Thanks to the solid financial support it gets, TGDD has been able to develop its online business and hence limit the damage due to the lockdowns. Other store chains in the region, such as Jaymart Thailand and Erajaya Indonesia, are also keen to embrace the e-commerce era and the new normal.

For the market, it is a good sign that the distribution structure is evolving and becoming more diverse.

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