25 Aug 2021

The Philippine Smartphone Market Remained Resilient Amid COVID-19 Resurgence in 2Q21

MANILA, August 26, 2021 -The Philippines smartphone market grew 22.6% year-on-year in 2Q21, according to the International Data Corporation’s (IDC) Quarterly Mobile Phone Tracker. This was the fourth consecutive quarter of year-on-year growth.

“Despite supply concerns, vendors are now in a better position of managing their supplies a year after the pandemic began. The market sustained its growth due to the rising need among consumers for mobile devices especially during these times,” says Angela Jenny Medez, Client Devices Market Analyst at IDC Philippines.

“5G shipments accounted for more than 10% of total shipments, growing by 56.1% compared to the previous quarter as prices declined by 41.5% quarterly to US$470 due to the aggressive pricing among Chinese vendors. Feature phone and 3G smartphone shipments continued to dwindle, reflecting the willingness of Filipinos to spend more for better functionality as well as the successful 4G LTE campaigns by telcos,” she added.

Note: The "Company" represents the current parent company (or holding company) for all brands owned and operated as subsidiary.

Philippines Top 5 Smartphone Company Highlights

realme accounted for 24.4% of the total market, clinching the top spot for two consecutive quarters. Its ultra low-end (<US$100) segment grew by 140% QoQ, driven solely by the C11 (2021), making up 28.3% of realme’s total shipments. The launch of the Realme 8 series increased its mid-range (US$200<US$400) prices by 9.5%.

vivo made a comeback in the Top 5, securing the second spot by doubling its shipments as it brought in more units in the ultra low-end (<US$100) and low-end (US$100<US$200) segments, driven by the Y1s and its new model Y12s set to replace its long-time hero model Y11.

Xiaomi propelled to the third spot by expanding further on its already massive online channels as well as its increased focus in the mid-range (US$200<US$400) segment. It brought in affordable 5G models by launching the Note 10 5G series, lowering its mid-range model prices by 14.3%.

Samsung took the fourth spot by launching several A series models and increasing shipments in the ultra low-end (<US$100) segment. It grew by almost threefold in this segment compared to the previous quarter, accounting for 27.3% of total shipments.

Despite its shipments contracting by 14.5% compared to the previous quarter, OPPO secured the fifth spot by dropping its prices across almost all models and launching its A54 model, which accounted for more than one-fourth of its total shipments.

"As new COVID-19 variants continued to dampen the recovery of the country and forced the reinstatement of lockdowns, vendors pre-emptively brought in more entry level smartphones and cut down on prices as more people are buying cheaper phones. This dragged overall prices down to US$186 in comparison to the US$199 from previous quarter, as vendors pushed unit sales at the cost of lower margins,” says Medez.

“As uncertainty around the COVID-19 looms, we are anticipating smartphone vendors to bring in more models in the ultra low-end (<US$100) segment to keep prices affordable despite rising component prices in order to push sales as consumers cut back on spending,” she added.

About IDC Trackers

IDC Tracker products provide accurate and timely market size, company share, and forecasts for hundreds of technology markets from more than 100 countries around the globe. Using proprietary tools and research processes, IDC's Trackers are updated on a semiannual, quarterly, and monthly basis. Tracker results are delivered to clients in user-friendly excel deliverables and on-line query tools. The IDC Tracker Charts app allows users to view data charts from the most recent IDC Tracker products on their iPhone and iPad.

About IDC

International Data Corporation (IDC) is the premier global provider of market intelligence, advisory services, and events for the information technology, telecommunications, and consumer technology markets. With more than 1,100 analysts worldwide, IDC offers global, regional, and local expertise on technology and industry opportunities and trends in over 110 countries. IDC's analysis and insight helps IT professionals, business executives, and the investment community to make fact-based technology decisions and to achieve their key business objectives. Founded in 1964, IDC is a subsidiary of IDG, the world's leading technology media, research, and events company. To learn more about IDC, please visit www.idc.com. Follow IDC on Twitter at @IDC.