According to research firm IDC, smartphone shipments in the Philippines declined by 8.0% Quarter-on-Quarter (QoQ) and 6.8% annually, bringing in 3.9 million units in 3Q22.
“The Philippine smartphone market quickly shrank in the third quarter as inflation accelerated, further aggravated by recent typhoons, hurting both consumers and vendors. Vendors took a more conservative approach by clearing inventories, maintaining prices of existing models, and sustaining momentum by bringing in more affordable smartphones,” said Angela Medez, senior market analyst at IDC Philippines.
The ultra low-end (<$100) price band grew 20.7% QoQ and 21.3% Year-on-Year (YoY) in 3Q22 due to aggressive pushes by vendors such as realme with its Narzo series, as well as Infinix with its Smart and Hot Play series, all aimed at targeting the entry level market as consumers sought cheaper options.
“The last quarter of the year is the peak sales period for smartphones, buoyed by holiday buying. But as inflation is expected to linger and peak towards the end of year, we anticipate an annual shipment decline towards the end of 2022 as vendors will lower targets for the upcoming holiday season by controlling inventories and increasing prices for newer models to counter the depreciating currency,” added Medez.
