Smartphone Trends in Asia: The Rise of Domestic Brands in Southeast Asia’s Smartphone Markets

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Domestic mobile handset manufacturers are rapidly gaining a strong foothold in Southeast Asian countries with their feature-rich devices at much more affordable prices compared global vendors such as Apple, Samsung and Microsoft. Domestic smartphone vendors have enjoyed significant success in the Philippines and Indonesia on the back of low-cost devices accompanied with offers on entertainment and social media content and applications. Filipino vendor Cherry Mobile offers 4G mobile at $299, which has the same specs but costs nearly 30% less than Samsung Galaxy S6 edge. On the other hand some markets like Vietnam have remained challenging for local vendors as consumer in the country tend to favor high-status international brands. Most domestic vendors have followed a specific formula incorporating 4Ps of marketing – product, price, place and promotion – to gain market share of established brands. These homegrown vendors have been facing strong competition from Chinese and global vendors who are responding by introducing devices at low prices to save their market share. Regulations in some countries like Indonesia where government has mandated local production, have benefitted domestic vendors by increasing cost for global vendors.

Scope

‘Smartphone Trends in Asia: The Rise of Domestic Brands in Southeast Asia’s Smartphone Markets report provides an overview of the strategies domestic mobile phone vendors have adopted in Southeast Asia, including analysis of the major components.

It consists of:

• Overview of leading domestic mobile phone brands, parties ventured into smartphone market and their market share.

• Overview of the key strategies involving 4Ps of marketing in their business models.

• Analysis of regulatory, technological and demand drivers along with competition inhibitors.

• Key findings from strategies in the region and a set of recommendations for local, Chinese and global vendors.

Reasons to Buy

Provides a comprehensive, detailed understanding of Tier 3 vendor smartphone product, pricing, and positioning strategies in the diverse South Asian markets.

Includes analysis on the pricing strategies, business models and the great variety of smartphone vendors, looking in particular at the various challenges and opportunities facing them, with examples from Tier 3 vendors throughout the region.

Align product portfolios by selecting suitable commercial strategies needed to save market share in highly competitive markets.

Quicken the decision-making process by understanding the strategies which underpin commercial strategies in terms of market overview, products, pricing, promotion and distribution.

A section on the smartphones markets in Indonesia, Philippines, Thailand and Vietnam offers particular insight into these markets, including an overview, sales forecasts and an examination of growth drivers and inhibitors.

Offers an overview of the actionable analysis of trends offers a wider perspective, while its case studies of four Tier 3 vendors in South East Asia provide a resource for more detailed planning.

Boasts of high presentation quality that allows it to be turned into presentable material immediately, for an executive-level audience.

Smartfren
Evercross
SPC
Mito Mobile
Advan
Mdot
ninetology
Gomax
Cherry Mobile
MyPhone
Cloudfone
Star Mobile
Torque
i-mobile
dtac
truemove
Wellcom
Mobiistar
Masstel/Massgo
Q (ABtel)
Bphone
Viettel
Samsung
Apple
Microsoft
Oppo
Xiaomi
ZTE
Gionee
Lenovo
LG
Hu

Table of Contents

Market context: Current positioning of Southeast Asian handset brands

Market context: Leading domestic brands

Market context: Mobile vendor categories

Definitions

Market share

How Southeast Asian device makers have leveraged the 4Ps of marketing

The 4Ps of Marketing

Product

Place(ment)

Price

Promotion

Future drivers and inhibitors

Regulatory market drivers

Technology market drivers: Migrating users from 2G to 3G/4G

Demand market drivers: Feature phone to smartphone migration

Competition inhibitors: Competition from new wave of low-cost Chinese vendors

Competition inhibitors: International vendors lowering prices

Market details: Case Studies

The Philippines: Cherry Mobile

Thailand: i-mobile

Vietnam: Bphone

Indonesia: Advan

Conclusions: Key findings and recommendations

Acronyms and Definitions

Table

EXHIBIT 1: DOMESTIC VENDORS BY COUNTRY, 2016

EXHIBIT 2: TYPES OF MOBILE VENDORS

EXHIBIT 3: DEFINITIONS

EXHIBIT 4: SHARE OF VENDORS, 2016

EXHIBIT 5: THE 4Ps OF MARKETING

EXHIBIT 6: BENEFITS OFFERED BY MULTI-SIM MOBILE PHONES

EXHIBIT 7: COMPARISON OF FEATURES AND PRICES OF SAMSUNG AND CHERRY MOBILE

EXHIBIT 8: COMPARISON OF DISTRIBUTION NETWORK & SERVICE CENTERS OF MYPHONE AND SONY

EXHIBIT 9: SMARTPHONE PRICES IN THE PHILIPPINES

EXHIBIT 10: SMARTPHONE PRICES IN INDONESIA

EXHIBIT 11: SMARTPHONE PRICES IN MALAYSIA

EXHIBIT 12: SMARTPHONE PRICES IN THAILAND

EXHIBIT 13: ACTOR DANIEL PADILLA PROMOTES MYPHONE

EXHIBIT 14: MOBILE SUBSCRIPTIONS BY TECHNOLOGY, APAC

EXHIBIT 15: SELL-THROUGH OF CATEGORIES AS PERCENTAGE OF TOTAL MOBILE HANDSET SALES IN APAC, 2016

EXHIBIT 16: INTERNATIONAL FOOTPRINTS OF SELECT CHINESE VENDORS

EXHIBIT 17: SHARE OF MARKET SALES IN UNITS: SAMSUNG VS. APPLE VS. LARGEST LOCAL VENDOR, 2016

EXHIBIT 18: SHARE OF MARKET SALES IN UNITS: SAMSUNG VS. APPLE VS. LARGEST LOCAL VENDOR, 2021

EXHIBIT 19: PHILIPPINES HANDSET SALES, 2015-21

EXHIBIT 20: CHERRY MOBILE’S HANDSET SELL-THROUGH AND MARKET SHARE 2012-16

EXHIBIT 21: CHERRY MOBILE‘S MOST AFFORDABLE SMARTPHONE WORLDWIDE

EXHIBIT 22: CHERRY PREPAID BUNDLE, JUNE 2015

EXHIBIT 23: THAILAND HANDSET SALES, 2015-21

EXHIBIT 24: I-MOBILE’S HANDSET SELL-THROUGH AND MARKET SHARE 2012-16

EXHIBIT 25: EXAMPLES OF SMARTPHONES LAUNCHED BY I-MOBILE IN 2015

EXHIBIT 26: PROMOTION FOR I-MOBILE DTV SERIES MOBILE PHONES INCLUDES FREE I-STAND, POWER BANK AND I-BAG, JUNE 2016

EXHIBIT 27: VIETNAM HANDSET SALES, 2015-21

EXHIBIT 28: COMPARATIVE PRICING OF LUXURY DEVICES IN VIETNAM, 2015

EXHIBIT 29: BPHONE PREPARES TO LAUNCH BPHONE2

EXHIBIT 30: INDONESIA HANDSET SALES, 2015-21

EXHIBIT 31: ADVAN’S HANDSET SELL-THROUGH AND MARKET SHARE 2012-16

EXHIBIT 32: ADVAN 4G PROMOTIONS, 2016

EXHIBIT 33: ADVAN’S CASH BACK PROMOTION WITH BRAND AMBASSADOR LIONEL MESSI

Figures

EXHIBIT 1: DOMESTIC VENDORS BY COUNTRY, 2016

EXHIBIT 2: TYPES OF MOBILE VENDORS

EXHIBIT 3: DEFINITIONS

EXHIBIT 4: SHARE OF VENDORS, 2016

EXHIBIT 5: THE 4Ps OF MARKETING

EXHIBIT 6: BENEFITS OFFERED BY MULTI-SIM MOBILE PHONES

EXHIBIT 7: COMPARISON OF FEATURES AND PRICES OF SAMSUNG AND CHERRY MOBILE

EXHIBIT 8: COMPARISON OF DISTRIBUTION NETWORK & SERVICE CENTERS OF MYPHONE AND SONY

EXHIBIT 9: SMARTPHONE PRICES IN THE PHILIPPINES

EXHIBIT 10: SMARTPHONE PRICES IN INDONESIA

EXHIBIT 11: SMARTPHONE PRICES IN MALAYSIA

EXHIBIT 12: SMARTPHONE PRICES IN THAILAND

EXHIBIT 13: ACTOR DANIEL PADILLA PROMOTES MYPHONE

EXHIBIT 14: MOBILE SUBSCRIPTIONS BY TECHNOLOGY, APAC

EXHIBIT 15: SELL-THROUGH OF CATEGORIES AS PERCENTAGE OF TOTAL MOBILE HANDSET SALES IN APAC, 2016

EXHIBIT 16: INTERNATIONAL FOOTPRINTS OF SELECT CHINESE VENDORS

EXHIBIT 17: SHARE OF MARKET SALES IN UNITS: SAMSUNG VS. APPLE VS. LARGEST LOCAL VENDOR, 2016

EXHIBIT 18: SHARE OF MARKET SALES IN UNITS: SAMSUNG VS. APPLE VS. LARGEST LOCAL VENDOR, 2021

EXHIBIT 19: PHILIPPINES HANDSET SALES, 2015-21

EXHIBIT 20: CHERRY MOBILE’S HANDSET SELL-THROUGH AND MARKET SHARE 2012-16

EXHIBIT 21: CHERRY MOBILE‘S MOST AFFORDABLE SMARTPHONE WORLDWIDE

EXHIBIT 22: CHERRY PREPAID BUNDLE, JUNE 2015

EXHIBIT 23: THAILAND HANDSET SALES, 2015-21

EXHIBIT 24: I-MOBILE’S HANDSET SELL-THROUGH AND MARKET SHARE 2012-16

EXHIBIT 25: EXAMPLES OF SMARTPHONES LAUNCHED BY I-MOBILE IN 2015

EXHIBIT 26: PROMOTION FOR I-MOBILE DTV SERIES MOBILE PHONES INCLUDES FREE I-STAND, POWER BANK AND I-BAG, JUNE 2016

EXHIBIT 27: VIETNAM HANDSET SALES, 2015-21

EXHIBIT 28: COMPARATIVE PRICING OF LUXURY DEVICES IN VIETNAM, 2015

EXHIBIT 29: BPHONE PREPARES TO LAUNCH BPHONE2

EXHIBIT 30: INDONESIA HANDSET SALES, 2015-21

EXHIBIT 31: ADVAN’S HANDSET SELL-THROUGH AND MARKET SHARE 2012-16

EXHIBIT 32: ADVAN 4G PROMOTIONS, 2016

EXHIBIT 33: ADVAN’S CASH BACK PROMOTION WITH BRAND AMBASSADOR LIONEL MESSI

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