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Thailand: Smartphone shipments dip in Q3 as inflation bites
Thailand’s overall smartphone shipments dropped 12% year-on-year in the third quarter, particularly for entry-level handsets, as inflation delayed people’s purchasing decisions, says global tech market analysis firm Counterpoint.
Shipments refer to smartphones that manufacturers send to mobile carriers and retailers.
The smartphone market did receive a boost from the ultra-premium segment, with growth of 32% year-on-year in the third quarter. Counterpoint categorises the ultra-premium segment as handsets priced more than US$600 (around 20,850 baht).
The firm said smartphones priced below $200 (around 6,950 baht) saw an 18% year-on-year drop in shipments in the third quarter. The entry-level segment may need another quarter or two to recover from the economic turmoil, said the firm.
The results were published in Counterpoint Research’s Monthly Thailand Smartphone Channel Share Tracker.
Counterpoint attributed the drop in Thai smartphone shipments to inflation, effects from the Russia-Ukraine war, and lower tourism in the third quarter, saying these elements hindered people from purchasing new handsets.
However, a lot of financially comfortable consumers still purchased ultra-premium smartphones during the period.
“To a certain extent, Thailand’s smartphone market is depending on the premium consumer for revenue at a time of economic uncertainty,” said Glen Cardoza, senior analyst at Counterpoint.
Apple led the premium market with a 53% year-on-year growth in shipments. The US company received a boost from the launch of the iPhone 14 series in September, Counterpoint said.
In the ultra-premium smartphone segment, Apple remained the market leader in Thailand with a 45% market share in the third quarter, a rise from 39% in the same quarter a year earlier.
According to Counterpoint, the premium segment is helping to balance and sustain the country’s smartphone market.
The research firm said 5G smartphones accounted for 47% of Thailand’s overall shipments in the third quarter as 5G has huge appeal for consumers who want to upgrade their handsets.
Advanced Info Service Plc, Thailand’s biggest mobile operator by subscriber base, saw its 5G users reach 5.5 million at the end of the third quarter, while its rival True Corporation hit 4.5 million.
Regarding sales channels, 24% of Thailand’s overall shipments came from online channels in the third quarter. That share is expected to rise in the fourth quarter due to seasonality, Counterpoint said. The firm said online channels are likely to use all means available to entice consumers in the final three months of the year.
Source: https://www.bangkokpost.com/business/2462605/smartphone-shipments-dip-in-q3-as-inflation-bites