Changing Device Usage Habits of Filipinos will Fuel Growth of Smartphones in 2018, says IDC

Changing Device Usage Habits of Filipinos will Fuel Growth of Smartphones in 2018, says IDC Image Credit: IDC

Device usage habits of Filipinos are rapidly changing, and it is reshaping the connected device trends in the country, according to IDC.

Based on IDC's latest report, smartphone shipments declined 7% to approximately 15 million units in 2017, while tablet shipments posted a 30% year-over-year (YoY) drop to 1 million units. 

Smartphone shipments recorded its first decline since its introduction into the local market as intense competition from top brands, such as Samsung, OPPO, and vivo, resulted in some vendors being ousted from the market.

Tablets continued to decline as their significance in the market waned due to the lack of practical use cases and cannibalization by smartphones with larger screen sizes. 

Smartphones and Tablets – Changes in Filipinos’ Usage Requirements

A clear trend has recently emerged in the Philippine smartphone market where end users are shifting to handsets with higher specs and better features. The Philippines has historically been among the price-sensitive markets in Asia/Pacific and still is.

Despite this, the average selling price of smartphones in 2017 grew to US$134, a 13% YoY increase.

Ultra low-end smartphones (US$100) still hold the lion's share of the market, accounting for 59% of all smartphones in 2017 compared with 67% in 2016. Meanwhile the combined share of low-end (US$100US$200) and midrange (US$200US$400) smartphones grew to 35% from 28% in 2016.

From a screen size perspective, phablets (5.5”7”) recorded significant growth in recent years, accounting for about a quarter of smartphone shipments in 2017.

"As mobile content continues to grow, smartphones have become the primary device for basic productivity and everyday media consumption, and this fuels the need for larger screens and higher specs," Ooi added.

On the other hand, slate tablets (7”11”), which used to be popular at one point, have begun to suffer from decreasing sales because they cannot offer the same level of practicality that phablets provide.

Aside from slate tablets, detachable tablets have also not caught on well in the Philippine market. Filipino end users find the relatively low specs but high price of detachables unappealing and opt for laptops within the same price range, which provide better overall utility.

Ray is a news editor at The Fast Mode, bringing with him more than 10 years of experience in the wireless industry.

For tips and feedback, email Ray at ray.sharma(at)thefastmode.com, or reach him on LinkedIn @raysharma10, Facebook @1RaySharma

PREVIOUS POST

Connected Clothing Ranks as Fastest Growing Wearables Sector; to Reach $1B in 2020

NEXT POST

GM, BMW, Audi and Mercedes Lead Connected Cars Market, says Counterpoint

THE EDITOR'S DESK

UPCOMING EVENTS

Artelligence 2019

Network Virtualization and SDN Asia

Network Virtualization & SDN Americas

Mobile 360 Digital Societies 2019

TADSummit 2019

MWC Los Angeles 2019

The Digitrans Forum 2019

Mobile 360 Eurasia 2019

ON TWITTER

ON FACEBOOK