40m Smartphones Sold in Southeast Asia so far in 2015

People using smartphones in subway trainDemand for smartphones in Southeast Asia has hit new heights in the first half of 2015, with sales up nine per cent year-on-year and almost 40 million units shipped in the first six months of the year alone.

Consumers across seven of the regions key markets (Singapore, Malaysia, Thailand, Indonesia, Vietnam, Philippines and Cambodia) have generated more than $8bn (£5.2bn) in sales value so far this year, with 3.2m more smartphones sold between January and June 2015 compared to the same period last year.

While the developed markets in Singapore and Malaysia didnt see any growth, sales were up by as much as 27 per cent year-on-year in some of the other countries.

GfK, which provides tracking data for the area, has also just begun monitoring smartphone sales in Myanmar, which saw 3m mobile handsets sold in H1 2015, 89 per cent of which were smartphones.

“The availability of a wide range of lower price options nowadays have made it possible and much more affordable for price sensitive consumers in these developing markets to switch over and own their first smartphone,” said Gerard Tan, account directory for technology at GfK.

“For instance, whole only 15 per cent of smartphones sold in the first half of 2013 cost $100 or less, this segment now occupies 35 per cent of the total market two years on, with Indonesia being the country with the most number of entry level smartphone brands and consumers in this region.”

Chinese manufacturers have played a crucial role in transforming this market, with brands like Xiaomi and Huawei targeting the entry level consumers that make up much of the market. In June 2015, 25 per cent of smartphones sold in the region were Chinese brands, compared to just four per cent back in 2013.

“Following their successes breaking into the entry level segment, Chinese brands can be seen introducing models with design and features which are comparable to those offered by todays international brands,” said Tan.

“The perception of Chinese brands has been elevated considerably as a result of their heightened marketing campaigns and the opening up of dedicated showrooms and retail counters. This could greatly intensify the competition, and shake up the regions smartphone marketplace.”

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