1 in every 3 cellphones sold in the Philippines is a smartphone

By Digital News Asia July 16, 2012

5 times as many smartphones in the first 5 months of this year compared with a year ago
Philippines now one of the fastest growing smartphone markets in SEA

1 in every 3 cellphones sold in the Philippines is a smartphone THE increasing affordability of smartphones has been propelling the strong growth of the sector in the Philippines, rendering the country one of the fastest growing smartphone markets in the emerging South-East Asia region.

In the first five months of this year, almost 1.7 million units of smartphones have already been sold, translating to more than five times the volume sales from the same period last year, GfK Philippines said in a statement.

Its report revealed that nearly 5.5 million mobile phones valued at around US$606.5 million have been sold since the beginning of this year. Out of this total, smartphones made up 30% in volume and contributed 66% in value.

According to the latest May findings, sales of smartphones hit its highest level, reaching over a third (34%) of all mobile phones sold, while its proportion of value contribution to the overall mobile phone market went up to 71%.

“Basic feature phones grew in sales volume by 30% and continue to remain popular, but it was the smartphone segment, with its 408% spike in demand, that has been stirring up the industry,” said Benny Villanueva, general manager of GfK Philippines.

“Its rising demand is largely triggered by the efforts of the manufacturers who are offering more affordable smartphones, as well as retailers, who have started offering zero percent interest programs of up to 24 months on top of their other aggressive promotion schemes.”

The average price of smartphones in Philippines has dropped 23% on the whole, from last year’s US$317 to US$244 this year. The increasing affordability of smartphones is more apparent in the Mindanao and Davao which recorded 43% and 35% drops in average prices when compared with last year. Findings also reflected a wide ranging average smartphone price across the different regions, from the lowest of US$169 in Mindanao to the highest of US$268 in Metro Manila.

“While South-East Asian countries such as Singapore and Malaysia have already reached high smartphone penetration level, the Philippines market still presents a lot of potential to smartphone manufacturers,” Villanueva added.

“The aggressive marketing and promotional activities by network service providers along with the Government’s ongoing efforts to improve Internet connectivity as well as offer free Wi-Fi in public areas will continue to generate escalating demand for smartphones for the next few years.”