Press release
Smartphone Trends in Asia: The Rise of Domestic Brands in Southeast Asia's Smartphone Markets
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.
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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.
Key Players:
Smartfren
Evercross
SPC
Mito Mobile
Advan
Mdot
ninetology
Gomax
Cherry Mobile
MyPhone
Cloudfone
Star Mobile
Torque
i-mobile
dtac
truemove
Wellcom
Mobiistar
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Masstel/Massgo
Q (ABtel)
Bphone
Viettel
Samsung
Apple
Microsoft
Oppo
Xiaomi
ZTE
Gionee
Lenovo
LG
Huawei
Sony
Alcatel
cyrus
polytron
ZH&K mobile
CKK
BS
SKK Mobile
Nipda
SKG Mobile
AIS
Bavapen
ASUS
Haier.
Report Scope
- Domestic mobile phone vendors use both online and offline channels to market their products. They are also investing in providing efficient after-sale services to better compete with international brands. Thai mobile has a network of 72 service centers across the country.
- Local vendors are promoting their offerings through popular celebrities to gain visibility and credibility in the markets, while seasonal promotions such as offering free access to OTT services etc. are also helping vendors to attract customers.
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- Chinese and international device companies pose the greatest challenge for local device manufactures as they offer mobile phones at very low profit margins and enjoy economies of scale owing to international presence.
- Increasing usage of social media and OTT applications is inducing demand for high-bandwidth smartphones, driving users to switch from feature phones to 3G/4G-enabled smartphones. The vendors have been taking advantage of the trend by offering low-cost smartphones supporting advanced mobile technologies.
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