Top

Vietnam Smartphone Market Returns to Double Digit Growth in Q2 2018

Xiaomi (363%) and Huawei (193%) were the fastest growing brands in Vietnam.

Xiaomi enters the top five brands for the first time 

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

 August 7th, 2018

According to the latest research from Counterpoint’s Market Monitor service, the Vietnamese smartphone market recorded double digit growth at 11% YoY, the highest since 4Q 2016. Growth in the smartphone market was due to new launches and offers in entry to mid segment, mainly from Chinese brands.  However, the overall handset market declined 6% YoY owing to a steep decline in the feature phone segment.

Commenting on the findings, Associate Director, Tarun Pathak said, “Even though the Vietnamese smartphone market is increasing at a healthy pace, the local players are facing stiff competition from Chinese and Global counterparts. Further, amid the US-China trade war, the RMB (renminbi) is weakening, resulting in cheaper Chinese products in Vietnam.  This will favour the Chinese brands, which now hold around 39% of the market in Vietnam.”

Commenting on the players’ strategies, research analyst, Varun Mishra added, “The Vietnamese e-commerce market is also is poised to grow as Chinese tech giants like Alibaba, JD.com and Tencent are investing in Vietnamese online. This will further give a boost to the Chinese players who have leveraged both offline and online platforms to sustain growth in similar markets. While the Chinese players are actively targeting mid-tier segments, local players are being pushed toward the entry level segment.”

Exhibit 1: Vietnam Smartphone Shipments Share by Brands

Source: Counterpoint Research: Quarterly Market Monitor Q2 2018

Market Summary:

  • The smartphone segment contributed to almost 52% of total handset shipments during Q2 2018. Although the feature phone segment declined 19% YoY, it remains a sizeable market in Vietnam.
  • Samsung captured over one third of the total smartphone market. The Galaxy J series continues to do well, contributing to over 60% of Samsung’s total shipments for Vietnam.
  • OPPO remains the second largest brand in Vietnam, driven by sales of its models like F7 and A71.
  • Xiaomi entered among top five in Vietnam for the first time owing to the strong performance of Redmi 5A and Note 5.
  • Huawei with its Y series and Honor brand, which debuted in the market in March, captured 5% of the total market. It aims to aggressively expand in the market in future. Vietnam has one of the fastest growing gaming industries in the world and Huawei has tied up with one of Vietnam’s top gaming firms, VNG, to boost growth.
  • Chinese brands in the mid-tier segment are now launching multiple variants of the same smartphone with different storage capacities, tempting customers to spend more.
  • Vietnam’s relatively low smartphone penetration indicates the market holds potential for growth. New players like Symphony MGT, HIYA and Vfone have entered the smartphone market, further crowding the smartphone segment.
  • Furthermore, additional companies such as Vingroup and Asanzo are planning to enter the smartphone market by launching models at lower price points, to capture the bottom of the pyramid of the price-sensitive Vietnamese market

The comprehensive and in-depth Q2 2018 Market Monitor is available for subscribing clients. Please feel free to contact us at press(at)counterpointresearch.com for further questions regarding our latest research, insights or press enquiries.

The Market Monitor research is based on sell-in (shipments) estimates based on vendor’s IR results, vendor polling triangulated with sell-through (sales), supply chain checks and secondary research.

Analyst Contacts:
Tarun Pathak
+91 997-121-3665
tarun@counterpointresearch.com

Shobhit Srivastava
+91 900-083-1117
shobhit@counterpointresearch.com

Varun Mishra
+91 991-502-0142
varun@counterpointresearch.com

Follow Counterpoint Research
press@counterpointresearch.com 

Counterpoint research is a young and fast growing research firm covering analysis of the tech industry. Coverage areas are connected devices, digital consumer goods, software & applications and other adjacent topics. We provide syndicated research reports as well as tailored. Our seminars and workshops for companies and institutions are popular and available on demand. Consulting and customized work on the above topics is provided for high precision projects.

Term of Use and Privacy Policy

Counterpoint Technology Market Research Limited

Registration

In order to access Counterpoint Technology Market Research Limited (Company or We hereafter) Web sites, you may be asked to complete a registration form. You are required to provide contact information which is used to enhance the user experience and determine whether you are a paid subscriber or not.
Personal Information When you register on we ask you for personal information. We use this information to provide you with the best advice and highest-quality service as well as with offers that we think are relevant to you. We may also contact you regarding a Web site problem or other customer service-related issues. We do not sell, share or rent personal information about you collected on Company Web sites.

How to unsubscribe and Termination

You may request to terminate your account or unsubscribe to any email subscriptions or mailing lists at any time. In accessing and using this Website, User agrees to comply with all applicable laws and agrees not to take any action that would compromise the security or viability of this Website. The Company may terminate User’s access to this Website at any time for any reason. The terms hereunder regarding Accuracy of Information and Third Party Rights shall survive termination.

Website Content and Copyright

This Website is the property of Counterpoint and is protected by international copyright law and conventions. We grant users the right to access and use the Website, so long as such use is for internal information purposes, and User does not alter, copy, disseminate, redistribute or republish any content or feature of this Website. User acknowledges that access to and use of this Website is subject to these TERMS OF USE and any expanded access or use must be approved in writing by the Company.
– Passwords are for user’s individual use
– Passwords may not be shared with others
– Users may not store documents in shared folders.
– Users may not redistribute documents to non-users unless otherwise stated in their contract terms.

Changes or Updates to the Website

The Company reserves the right to change, update or discontinue any aspect of this Website at any time without notice. Your continued use of the Website after any such change constitutes your agreement to these TERMS OF USE, as modified.
Accuracy of Information: While the information contained on this Website has been obtained from sources believed to be reliable, We disclaims all warranties as to the accuracy, completeness or adequacy of such information. User assumes sole responsibility for the use it makes of this Website to achieve his/her intended results.

Third Party Links: This Website may contain links to other third party websites, which are provided as additional resources for the convenience of Users. We do not endorse, sponsor or accept any responsibility for these third party websites, User agrees to direct any concerns relating to these third party websites to the relevant website administrator.

Cookies and Tracking

We may monitor how you use our Web sites. It is used solely for purposes of enabling us to provide you with a personalized Web site experience.
This data may also be used in the aggregate, to identify appropriate product offerings and subscription plans.
Cookies may be set in order to identify you and determine your access privileges. Cookies are simply identifiers. You have the ability to delete cookie files from your hard disk drive.