Smartphone market recovers on lower prices

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The country’s smartphone market registered a 3.8 percent growth to 16.9 million in 2023 versus the prior year due to  lower prices, according to the latest data from International Data Corp. (IDC).

“The market made a strong comeback towards the end of 2023, driven by year-end holiday festivities and Transsion’s new product line-up, propelling the less than $100 price segment to more than double both quarterly and annually,” said Angela Medez, IDC Philippines client devices senior market analyst.

Transsion Holdings’ smartphone brands  are Tecno and Infinix.

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IDC noted a drop in average selling prices (ASP) from $200 in the fourth quarter of 2022 to $169 in the fourth quarter of 2023, declining 15 percent year on year and 15.5 percent quarter on quarter.

Over 80 percent of the 5.6 million shipments in the fourth quarter of 2023 were in the price band of below $200 , IDC said.

“IDC has raised forecast for 2024 given the high performance in fourth quarter of 2023 and optimistic economic outlook as inflation continues to decline and private spending grows,” Medez said.

Transsion Holdings, with smartphone brands Tecno and Infinix, took the top spot, growing 98 percent annually and accounting for over one-third of total shipments in 2023, as the company reached a new high with all three sub-brands positioned in the ultra low-end segment.

Transsion’s Tecno started to move upwards with the introduction of its Phantom series in 2023, its first smartphone at a $500+ price point.

Other vendors slowed with realme registering the biggest annual decline of 27.6 percent, dropping to the second spot.

In terms of market share, Transsion leads at 32.4 percent, followed by realme with 15.9 percent, OPPO at the third spot with 12.2 percent while vivo ranks fourth at 11.3 percent. Xiaomi rounds out the top five with 9.8 percent market share.

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