iPhone not hit by Southeast Asia's collapsing smartphone market

Posted:
in iPhone edited November 2022
New research claims that while total smartphone shipments dropped dramatically in Southeast Asia during the third calendar quarter of 2022, Apple's iPhone saw a 63% increase year over year.




In 2019, Apple was seeing competition in the Southeast Asia market from smartphones that were nearly always considerably cheaper than the iPhone. Today with economic pressures meaning the market dropped 10% in Q3 2022, however, Apple has continued to see a significant rise.

According to Counterpoint Research, economic uncertainty across the region is responsible for the lower than expected sales. That drop is chiefly in the phones that cost $200 or lower, though, while those premium models at $400 or greater, have done better.

Shipments of lower cost smartphones dropped 24% YOY, while premium models rose 29% over the same period.

Source: Counterpoint Research
Source: Counterpoint Research


"There were some brand-level hits and misses too in Q3 2022," writes Counterpoint Research. "While Samsung shipments fell 13% YoY, Apple's shipments were up 63% YoY across all the key countries."

Counterpoint notes that Vietnam appears to be "grabbing iPhones at a faster rate than its neighbours." Buyers in Thailand and the Philippines have reportedly been drawn to 5G, but a lack of 5G coverage means demand is softer in Vietnam and Indonesia.

The research company expects that lower than predicted sales means that manufacturers will have inventory of older smartphones. Counterpoint says it expects to see incentives such as more trade-in offers.

Read on AppleInsider

Comments

  • Reply 1 of 8
    lkrupplkrupp Posts: 10,557member
    Simple economics. People who can afford premium products like the iPhone are less likely to be affected by downturns in the economy. Since the bulk of Samsung’s sales are in the low-end sector they got creamed, something the ‘yeah-but’ crowds ignores. Yet another reason Apple has chosen to stay out of the low-end market, and with good reason. 
    watto_cobraFileMakerFellerjony0
  • Reply 2 of 8
    MadbumMadbum Posts: 527member
    lkrupp said:
    Simple economics. People who can afford premium products like the iPhone are less likely to be affected by downturns in the economy. Since the bulk of Samsung’s sales are in the low-end sector they got creamed, something the ‘yeah-but’ crowds ignores. Yet another reason Apple has chosen to stay out of the low-end market, and with good reason. 
    Very well said.

    I will also just add in economy like this , especially lock downs in China. When people are isolated, what comes next after food? A connection with outside with your smart phone.

    and judging by the numbers, people are cutting in other areas but spending on their favorite mobile device, Apple
    edited November 2022 danoxwatto_cobrajony0
  • Reply 3 of 8
    danoxdanox Posts: 2,671member
    Madbum said:
    lkrupp said:
    Simple economics. People who can afford premium products like the iPhone are less likely to be affected by downturns in the economy. Since the bulk of Samsung’s sales are in the low-end sector they got creamed, something the ‘yeah-but’ crowds ignores. Yet another reason Apple has chosen to stay out of the low-end market, and with good reason. 
    Very well said.

    I will also just add in economy like this , especially lock downs in China. When people are isolated, what comes next after food? A connection with outside with your smart phone.

    and judging by the numbers, people are cutting in other areas but spending on their favorite mobile device, Apple

    In many area’s the smartphone and small iPad/Tablet are the computers of choice. No different than using a small motorize bike instead of a car. (third world everywhere, the Chinese/Japanese companies are cleaning up in that particular market).
    edited November 2022 watto_cobra
  • Reply 4 of 8
    In the near term, US preventing China from developing/using advanced chips will dampen the enthusiasm of Chinese toward smartphones. The remnant effect of this decrease of passion will reduce Chinese smartphone makers in developing new smartphones. Because they see there is no future to match Apple iPhones. Why bother? 
  • Reply 5 of 8
    avon b7avon b7 Posts: 7,479member
    In the near term, US preventing China from developing/using advanced chips will dampen the enthusiasm of Chinese toward smartphones. The remnant effect of this decrease of passion will reduce Chinese smartphone makers in developing new smartphones. Because they see there is no future to match Apple iPhones. Why bother? 
    That is definitely not the case as all Chinese manufacturers still have access to the most cutting edge chipsets. The only real developer of homegrown custom SoCs for phones was Huawei but they are also using Snapdragon chipsets at the high end now, and have stated that 2023 will be the year they move back to a two flagship models per year. 

    They have been re-jigging their supply chain and obviously left a huge hole in the Chinese market while everything slowly comes back online.

    Throw in Covid, an economic downturn, the chip shortage/surplus, the US-China tech war and the resulting longer upgrade periods and you have pretty much the perfect storm and I'm of the opinion that Apple hasn't escaped it. 

    Prices in the EU for example are a mid-term deterrent for purchase and, availability aside, I expect demand to be weaker during the holiday period.

    But the most important point is that the market is still dominated by Android phones. 
    muthuk_vanalingamFileMakerFeller
  • Reply 6 of 8
    avon b7 said:
    In the near term, US preventing China from developing/using advanced chips will dampen the enthusiasm of Chinese toward smartphones. The remnant effect of this decrease of passion will reduce Chinese smartphone makers in developing new smartphones. Because they see there is no future to match Apple iPhones. Why bother? 
    That is definitely not the case as all Chinese manufacturers still have access to the most cutting edge chipsets. The only real developer of homegrown custom SoCs for phones was Huawei but they are also using Snapdragon chipsets at the high end now, and have stated that 2023 will be the year they move back to a two flagship models per year. 

    They have been re-jigging their supply chain and obviously left a huge hole in the Chinese market while everything slowly comes back online.

    Throw in Covid, an economic downturn, the chip shortage/surplus, the US-China tech war and the resulting longer upgrade periods and you have pretty much the perfect storm and I'm of the opinion that Apple hasn't escaped it. 

    Prices in the EU for example are a mid-term deterrent for purchase and, availability aside, I expect demand to be weaker during the holiday period.

    But the most important point is that the market is still dominated by Android phones. 
    But the enthusiasm is already reflected in the global decrease of smartphone sales while Apple is the exception and reversing the trend up. 
    watto_cobrajony0
  • Reply 7 of 8
    avon b7avon b7 Posts: 7,479member
    avon b7 said:
    In the near term, US preventing China from developing/using advanced chips will dampen the enthusiasm of Chinese toward smartphones. The remnant effect of this decrease of passion will reduce Chinese smartphone makers in developing new smartphones. Because they see there is no future to match Apple iPhones. Why bother? 
    That is definitely not the case as all Chinese manufacturers still have access to the most cutting edge chipsets. The only real developer of homegrown custom SoCs for phones was Huawei but they are also using Snapdragon chipsets at the high end now, and have stated that 2023 will be the year they move back to a two flagship models per year. 

    They have been re-jigging their supply chain and obviously left a huge hole in the Chinese market while everything slowly comes back online.

    Throw in Covid, an economic downturn, the chip shortage/surplus, the US-China tech war and the resulting longer upgrade periods and you have pretty much the perfect storm and I'm of the opinion that Apple hasn't escaped it. 

    Prices in the EU for example are a mid-term deterrent for purchase and, availability aside, I expect demand to be weaker during the holiday period.

    But the most important point is that the market is still dominated by Android phones. 
    But the enthusiasm is already reflected in the global decrease of smartphone sales while Apple is the exception and reversing the trend up. 
    I think it's more a case of cycles. Apple, as has been the case before, cannot sustain iPhone growth with higher prices. During a recession with high inflation, component shortages, assembly problems etc it is mission impossible. 

    You don't have to go back very far to see the profit warning that Apple had to issue and the subsequent deals they made available to stimulate demand and that was largely due to just one factor: high pricing. 

    In industry terms, we are already seeing some companies claiming that the smartphone era is over in terms of absolute growth and the smartphone itself will merge into a far larger group of IoT devices that literally play off each other. Some say the smartphone peak was around 2016. 

    We are talking about interoperability among devices of all kinds and distributed file systems, distributed security, distributed hardware functionality etc. 

    However, like the metaverse, perhaps the real question is how far away are we from seeing it play out in the real world? 

    All we know is that the process has already started with various designs of AI capable, secure, IoT chipsets already making their way into final designs of numerous products. 


    FileMakerFeller
  • Reply 8 of 8
    If the perception is that Apple devices have a longer useful life, maybe people are concentrating more on value: buy an iPhone to last the next five or six years with full OS support vs buy an Android with perhaps three years' support.
    jony0
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