The smartphone market in the Philippines displayed signs of resilience in the second quarter of 2023, with a 2.1 percent year-over-year decline.
While this may appear as a setback, it represents a marked improvement compared to the double-digit contractions witnessed in the previous two quarters. Additionally, the second quarter saw a remarkable 20 percent quarter-over-quarter growth, reaching a total of 4.2 million units shipped.
Analysts attribute this surprising recovery to several factors. Angela Medez, Client Devices Senior Market Analyst at IDC Philippines, explained, “Though inflation in the Philippines is slowing down and on the mend, consumer appetite for spending remained cautious in the face of higher prices of goods and economic uncertainty, resulting in eight consecutive quarters of annual contraction.”
Leaders in the smartphone market in the Philippines are: Transsion (with 38.3 percent share), Realme (16.3 percent), Xiaomi (11.5 percent), Oppo (10.7 percent), and Samsung (9.8 percent) in Q2 2023.
Transsion, a prominent player in the smartphone industry, emerged as a frontrunner in the Philippines market during the second quarter. The company secured a significant lead, accounting for an impressive 38 percent of total shipments in 2Q23. This achievement marked the second consecutive quarter where Transsion held the top spot in the Philippines market.
One of the standout performers within Transsion’s portfolio was its sub-brand, Tecno. Tecno experienced remarkable growth, surging by 145 percent quarter-over-quarter and an astounding 237 percent year-over-year. This impressive growth was attributed to Tecno’s expanded channel coverage throughout the country and the successful launch of multiple models. The Spark 10 series, in particular, played a pivotal role in Tecno’s success, driving substantial growth in the ultra low-end segment (devices priced below US$100).
These developments indicate a promising trajectory for the smartphone market in the Philippines. As economic conditions stabilize and consumer confidence gradually returns, industry experts anticipate further growth and competition among smartphone manufacturers in the coming quarters.