Southeast Asia(SEA) has been showing consistent economic promise for a while now. The changing landscape is giving the智能手机sector a much-needed boost as well. Four players have a pivotal role in this sector.
Whilegovernmentsupport in key SEA countries has resulted in a faster rollout of5Ginfrastructure, most governments are currently focused onCOVID-19vaccination and jump-starting the economy. In the parallel,Thailandcontinues to concentrate on advanced5Gutilization, while countries likeIndonesia,PhilippinesandVietnamare focusing on solidifying their5Ginfrastructure and increasing coverage.
Operators
The main operators in the key SEA countries are not only concentrating on increasing their 5G coverage but also making sure they sustain a healthy4Gnetwork. Rural focus is helping them raise subscription levels as well. Their consistent tie-ups with OEMs are giving a push to bundled packages and 5G (especially in metros and Tier I cities). This will continue to increase at a YoY level, even after Q4 2021.
From merging telecom operators inIndonesiato industrial applications being pursued in Thailand,5Gconnectivity is growing stronger in this region.
Even consumers who had not considered 5G during their most recent purchase of a smartphone, will consider it strongly in the future.
OEMs
New5G推出的智能手机在中间层价格乐队甲型肝炎e been all the rage in this region. The ASPs for these 5G phones will go down for upcoming models from top brands like realme. This will lead to an increase in upgrades.
Brands likeOPPO, Xiaomi andrealmeare adding consumerIoTproducts, like smart speakers, to purchase deals which is good exposure for their IoT portfolio in these markets. For brands likeXiaomi,IoTsegment makes up 10% of total revenue in some markets.
As the markets open, brands are also increasing their offline footprint. Xiaomi is looking to increase its sales outlets from 38 to more than 100 within this year. The brand is also making sure its after-sales network is geographically widespread. Xiaomi and realme stand out here.
E-commerce
The “9.9”shopping festivalsaw some big investments and celebrity endorsements ononlineplatforms likeShopee. Other big players across SEA, likeLazadaandTokopedia,also spent on marketing campaigns and tie-ups with brands, events and celebrities.
Online salesare one of the biggest reasons for consumers to indulge in shopping towards the end of the year.
Whether it is ‘live shopping’ on Tokopedia or increasing Korean influence with music groups like BTS, consumers can relate to this association. The main SEA economies may see their highest ever online smartphone shipments in Q4 2021. WithCOVID-19infection rates going down in most SEA countries, the only deterrent here iscomponentshortagesaffecting supply.
Manufacturing
Q3 2021 saw governments in Indonesia and Vietnam giving emphasis to essential items. As infection rates went down in August and September, vaccination for themanufacturingsector was given priority. Starting September, most production facilities inVietnamresumed normal operations and scaled up to make provisions for Q4 demand.
All the above factors play in favor of a very productive and lucrative smartphone season in Q4 2021. All key SEA countries are likely to show more than 20% growth over Q3 2021 and a healthy YoY increase as well. Indonesia,ThailandandPhilippineswill show a higher online share in smartphone shipments.