Bangkok--6 Nov--IDC
IDC's Asia/Pacific Quarterly Mobile Phone Tracker, 2Q 2009 results show that the Thailand mobile phone market began to show signs of recovery in second quarter of 2009 (2Q09) with a 5% quarter-on-quarter growth in shipment volumes. Much of the growth came from shipments of mobile phones priced below US$100, particularly "House brands". House brands, the local term for smaller Thailand and China-based handset manufacturers, have been growing in popularity recently.
According to Wanwadee Tiavongsuvan, Market Analyst for Telecommunications Research at IDC Thailand, "With the uncertain economic conditions, we are seeing a shift in preference for low-end phones, even among the more affluent consumers who are traditionally accustomed to buying high-end devices. Additionally, consumers with lower disposable income have become more confident in spending as stimulus packages from the government takes effect in the consumer segment. As a result, house brands have become a popular choice among middle- to low-income consumers, and has managed to gained market share from major international brands."
Strong buying of converged devices continued to be a major driver during the period. However, the increasing popularity of house brands, that accounts for 25% of unit shipments in 2Q09, visibly helped put the market back on a positive growth track. By offering attractive features at cheaper prices, house brands targets price-sensitive consumers with less brand loyalty. Some vendors and mobile operators were aggressive in bundling these devices with mobile voice minutes to aggressively push sales.
While IDC expects continued growth in this segment, challenges for house brands lie ahead. With growing demand for features such as dual-SIM and mobile analog TV, which are key selling points of house brands, major international vendors are seen to adjust their strategies and put competitive pressure to the smaller local players. Intensified competition in terms of price and after sales service among vendors can be expected.
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