Philippine market in decline, but Transsion is on the rise!
According to the International Data Corporation (IDC) Quarterly Mobile Phone Tracker, the Philippine market’s decline slowed to a 2.1% year over year (YoY) contraction and 20.0% quarter over quarter (QoQ) growth, bringing in 4.2 million units in 2Q23. Even though the market is down YoY, this is better than the double-digit contractions in the past two quarters and is also the least that the market has contracted in the past eight quarters.
“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,” says Angela Medez, Client Devices Senior Market Analyst at IDC Philippines.
Transsion took a sizeable lead, accounting for 38% of total shipments in 2Q23 and retaining the top spot for two consecutive quarters. Transsion’s sub-brand, Tecno, grew 145% QoQ and 237% YoY, driven by its increased channel coverage throughout the country and multiple model launches, led by its Spark 10 series, that propelled its ultra low-end (<US$100) to more than triple in growth both quarterly and annually.
“With the market anticipated to remain subdued for the rest of the year, IDC expects more competition and growth in the lower-price segments as vendors focus on improving sales,” Medez added.