Smartphone growth a boon for Chinese brands in Philippines

Smartphone growth a boon for Chinese brands in Philippines

The second quarter of 2018 saw renewed growth in the Philippines’ smartphone market, with Chinese brands increasing their share of this market.

Data from Counterpoint Research saw smartphone shipments increase by 9% year-on-year – accounting for 76% of device shipments in Q2 - despite the overall market for handsets contracting by 6%. The drop was caused by a sudden decline in feature phone shipments.

The research firm’s director, Tarun Pathak, noted that Chinese brands now held around 45% of the market, noting: “Chinese brands such as Oppo, Vivo and Huawei, with their lean portfolio and focused marketing, have gained significant consumer mind share.”

“However, Samsung and Cherry Mobile still have a very strong hold on the local market, especially in rural areas”, he added. Analyst Hanish Bhatia noted that around 75% of smartphones sold in the quarter had cost less than $200, which he described as “the sweet spot for the market and the key focus of leading brands.”

“Local players such as Cherry Mobile and MyPhone are now solely targeting the sub-$99 price segment, primarily due to the aggressive approach of Chinese OEMs in the mid-tier price segments”, said Bhatia.


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