IDC predicts smartphone market in Thailand to stay stagnant

The Thai smartphone experienced a significant decline in 2022 and is expected to remain stagnant because of inflationary considerations, rising rates of interest, and a lacklustre growth forecast for the Thai economy, in accordance with the International Data Corporation (IDC).
The IDC reported that 16.6 million smartphone shipments had been made in 2022, marking a 21% decline from the previous yr and the lowest number of items offered since 2014. In the fourth quarter of 2022, shipments fell by 23% 12 months over year, reaching four.2 million models.
The decline in shipments was largely attributed to the absence of presidency stimulus campaigns in 2022 that boosted smartphone adoption within the earlier yr, in addition to the economic and inflationary pressures. Cheat sheet -level smartphone phase (US$200) was significantly affected, with its market share shrinking from 64% within the previous 12 months to 59%. Additionally, the average promoting worth (ASP) increased by 15% 12 months on 12 months (YoY) to US$329 in 2022.
Although the share of 5G smartphones increased from 24% in 2021 to 35% in 2022, the conversion from 4G to 5G was not as vital because the shift from 3G to 4G because of affordability concerns and a scarcity of compelling use circumstances for shoppers.
Apirat Ratanavichit, Market Analyst at IDC Thailand, stated he anticipates flat progress for the Thai smartphone market in 2023 due to ongoing inflationary concerns, rising rates of interest and a lacklustre progress forecast for the Thai financial system.
“Overall shopper spending energy is unlikely to rebound in the short time period, largely affecting the lower-end phase which contains the majority of the smartphone market. On the premium finish, IDC expects sustained progress as customers are interested in vendor offerings with a superior consumer experience, better specs and improvements.”
Top 5 Smartphone Vendor Highlights
During the fourth quarter of 2022, Samsung continued to steer the smartphone marketplace for the sixth consecutive quarter, regardless of a decline of 11% quarter over quarter (QoQ) and 20% YoY in its market share. Samsung’s premium Galaxy S/Foldable smartphones carried out properly through the vacation interval.
Apple rose to the second spot with a 30% QoQ increase but saw a decline of 7% YoY. The launch of the new iPhone 14 range in September 2023, versus the previous year’s fourth quarter, resulted in a stronger third quarter shipment. The iPhone 14 Pro range continued to outperform the iPhone 14 vary, whereas the iPhone 11 and different n-1 and n-2 models acquired value cuts and continued to promote well.
OPPO dropped to the third spot but experienced an 18% QoQ improve in sales, with a slight 0.6% YoY lower. Most of OPPO’s shipments had been within the low-end segment, which grew 28% QoQ and 12% YoY. The A16k, A17, and A57 have been the main quantity drivers, and OPPO ran campaigns to advertise sell-out, including retail-level presents and promotions for promoters.
Vivo rose to the fourth spot, with a 36% QoQ development however an 18% YoY decline. Sales within the low-end segment rebounded by 47% QoQ after significant declines in previous quarters, while sales within the mid-range segment rebounded by 70% but decreased by 19% YoY. Vivo continued to run advertising campaigns and launched several fashions in the low-end Y series, as properly as introduced the IQOO model in Thailand.
Xiaomi dropped to the fifth spot, with a 3% QoQ decline and a 50% YoY decline. Telco gross sales increased significantly, as the Redmi 10 5G remained a key model in the reasonably priced 5G section. Xiaomi saw a decline in low-end section sales however rebounded in the ultra-low-end (US$100) segment with the launch of Redmi A1..

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