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Smartphone market logs sluggish growth in Asia

Posted: 08 Dec 2014     Print Version  Bookmark and Share

Keywords:IDC  smartphone market  phablet  tablet 

The smartphone market in Asia/Pacific excluding Japan (APEJ) has registered a modest six per cent QoQ and 24 per cent YoY growth in 3Q14. This is according to International Data Corp. (IDC) stating that this trend indicates a drop in growth from previous years. In addition, as the largest market in the region, China may be having a hard time sustaining the uphill climb in the smartphone arena that it has enjoyed for the past years.

During the same period, growth in China slowed down to one per cent QoQ, while other emerging markets in APEJ surged ahead with 22 per cent growth. The tier-1 Chinese vendors have extended their reach outside of PRC and their shipment contribution from APEJ countries excluding PRC has increased over the past few quarters.

Smartphone shipments by vendor

The smartphone market in APEJ posted a moderate six per cent QoQ and 24 per cent YoY growth in 3Q14.

India led QoQ smartphone growth in the region with 23 million units shipped in 3Q14, and added around five million units to the market over 2Q14. The local vendors in India, particularly Micromax and Lava, gained most from increased shipments of the 4.5-5in smartphone category priced at around $100. As a result, Micromax has extended its leadership in India and claimed 20 per cent share in the India smartphone market in 3Q14. Other emerging countries in the region also showed high growth rates and together shipped 23 million smartphone units in 3Q14. In particular, Thailand, Philippines and Indonesia surged ahead in South East Asia (SEA) with almost double the shipments in 3Q14 compared to a year ago.

Overall, local and Chinese vendors have gained at the cost of global vendors. The impact was more pronounced in SEA where global vendors' share dropped from 62 per cent in 3Q13 to 43 per cent in 3Q14. "The local vendors have leveraged their strengths and understanding of the local market, coupled with aggressive marketing to grow their scale in the <$100 segment. On the other hand, the Chinese vendors have been more focused in the price segment $100-$200, are also trying to differentiate through concerted moves into the mid-range to-high-end segments as well," said Kiranjeet Kaur, senior market analyst of client devices research at IDC Asia/Pacific.

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