Biggest Q1 Decline In Vietnam Smartphone Shipments

Biggest Q1 Decline In Vietnam Smartphone Shipments

Record 30% Q1 Drop In Vietnam's Smartphone Market

On May 25, 2023, cities such as Jakarta, Hong Kong, London, Boston, Toronto, New Delhi, Beijing, Taipei, and Seoul were in the spotlight.

The Vietnam smartphone market fell by 30% in Q1 2023, which is the largest decline in Q1 ever, according to Counterpoint Research. This happened due to bad economic conditions and low customer demand. People postponed their smartphone buying during that time.

Vietnam's Q1 2023 GDP increased by 3.3%, which is low. Investment into the country reduced because FDI volumes fell. Retailers reduced their expansion plans and re-examined their business strategies due to bad business conditions. Retail stores were open for less time, leading to fewer working hours and reduced incomes for employees. After Vietnam's Tết festival, footfall in retail stores was low.

The demand for smartphones was misunderstood by OEMs, so inventory stockpiled. Retailers then tried to sell the excess at lower prices. In Q1 2023, every top OEM except Apple saw a decrease in shipments compared to the previous year.

Glen Cardoza, who is a Senior Analyst, thinks the Vietnam smartphone market isn't going to get better soon. Because of difficulties in the economy, it will take time. Vietnam exports a lot of smartphones, so they need the global economy to get better. By the end of 2023, things could start to improve, and people may want to buy cheaper phones more.

first quarter of 2023, with a 15% market share. Even though Samsung's shipments dropped by 32% compared to the same period a year ago, it still managed to maintain its lead position in the market. Samsung's superior portfolio and competitive models played a significant role in determining its success. Moreover, the Galaxy A04 was the top-selling model, accounting for 15% of the total market share.

Since its launch in Q4 2022, the A17 series from OPPO has been a hit. The A17 and A17k took up 24% of all OPPO shipments in Q1 2023. OPPO's share in the >$600 price band is on the rise. That's why they released the Find N2 Flip in Vietnam. To stay competitive, the model was available for pre-booking with discounts as high as $200.

In Q1 2023, Apple ranked third. The iPhone 14 Pro series was very popular at the beginning but then lost demand. Apple unexpectedly lowered the prices of the iPhones to increase demand and clear the inventory. The iPhone 14 Pro Max had a 12% price reduction compared to its launch price. Shipments increased by 12% YoY due to these lower prices. The >$600 price band now has a 24% market share compared to the 17% in Q1 2022.

first quarter of 2023 was tough for Xiaomi and vivo as they both suffered massive drops in sales compared to the same period last year. Xiaomi saw a decrease of 46%, while vivo experienced an even larger decline of 52%.

In Q1 2023, online shipments decreased to 15% from the previous quarter's 17%. This is because online channels reduced their promotional activities after the holiday season. Offline retail chains offered price cuts and discounts, making it difficult for e-commerce sites to draw shoppers. Premium devices were sold at lower prices in physical stores.

Vietnam really cares about 5G for digital transformation. They want everybody to have 5G devices by 2030. More 5G phones are being shipped, increasing by 18% in Q1 2023. The cheaper 5G phones aren't selling so well yet. But in Q1 2023, more people bought 5G phones in the $200-$400 range than before.

Vietnam has had a tough time due to low consumer demand and lots of stock in Southeast Asia. This means their smartphone market won't improve for a while. In 2023, it's predicted that it will stay as it is. But when the Vietnamese government introduces 5G, things will change. They'll be able to make more things and get more investments. This will help kick-start their economy.

The global smartphone market decreased by 14% in Q1 of 2023. Apple had the highest Q1 share ever recorded.

In the first quarter of 2023, smartphone shipments in Indonesia experienced a decrease of 8.1% compared to the previous year. The festive season helped to limit this decline.

A study reveals that 72% of smartphone users in India suffer from low-battery stress. Smartphone users said that they are constantly worried about their device's battery life and battery indicators. The research also shows that 55% of these users feel anxiety when their phone's battery level reaches 20% or lower. Adequate battery life has become an aspect of concern for smartphone users in India, and many look for ways to extend their battery life.

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