Smartphone market report in the second quarter of 2022: The numbers reflect Vietnam’s macroeconomic stability

“The numbers reflect Vietnam’s macroeconomic stability, with moderate inflationary pressures and increased consumer spending as the market returns to normal. New product launches, coupled with customer preference for high-end devices, played an important role in Q2 smartphone shipments,” said the Counterpoint Research report.

Specifically, shipments of low-cost smartphones were almost unchanged, even falling 1% year-on-year to 3.2 million units. However, high-end smartphones (devices classified over $400) have grown 75% year-over-year. Smartphone lines designed for gaming also experienced high growth.

With the Samsung phone line, the growth is almost unchanged at 3%. The reason is because the Korean technology company is struggling with inventory and production cuts at factories in Vietnam, the report said. However, the launch of low- to mid-range devices in the A and M series has helped the brand maintain market share. The S series models were also among the best sellers in the premium smartphone category during the quarter.

And Oppo is the only Chinese phone company with a positive growth of 25% year-on-year, as newly launched mid-range devices have had good sales in the market. On the other hand, other brands such as Xiaomi, vivo and Realme saw a year-on-year decline as they struggled with rising inventory costs.

Apple alone, had the largest growth at 115% over the same period last year. The simple reason is that Vietnamese users still prefer high-end devices. Apple’s growth numbers are also partly thanks to its retail expansion in Vietnam through official distributors, allowing the brand to expand its customer reach.

The report also stated that Vietnam’s smartphone market is dominated by offline channels. As a result, original parts manufacturers (OEMs) are opening more retail stores across the country. Meanwhile, major distributors are also opening retail stores of major brands to lead the sales, with Samsung and Apple leading the charts.

“Vietnamese people are passionate about high-end smartphones,” said research analyst Akash Jatwala. “The premium device group (costing more than $400) has increased by about 75% year-on-year thanks to the iPhone 11, iPhone 13 Pro Max and Galaxy S series. Besides, Apple has recently continuously reduced the prices of models. Used iPhones in Vietnam, making them among the cheapest in the world. Vietnam is becoming one of Apple’s major markets in Southeast Asia.”

In terms of smartphone manufacturing, activities are showing signs of increasing and OEMs are increasing investment in Vietnam. Xiaomi has started manufacturing smartphones in Vietnam in cooperation with DBG Technology. Samsung, which makes the majority of smartphones in Vietnam, plans to increase investment as it expands its supply chain. Apple is also testing Apple Watch and MacBook Pro production in Vietnam, and moving some iPad production lines out of China into Vietnam this year.

In the second half of 2022, Counterpoint Research expects the final quarter to see strong growth in shipments. Specifically, the report said that Vietnam is currently getting rid of major macro problems and not having much inflationary pressure, even if manufacturing activities are increasing. But in the second half of the year, the economy may be affected by macro issues to some extent, such as the impact of rising raw material prices due to global inflationary pressures, or the consumer preferences shift to other essential goods. However, market demand is expected to still grow due to the launch of the new iPhone model from Apple and large consumer spending during the Lunar New Year.

Refer to Counterpoint, Appleinsider