Mobile market records 20 pct growth in 2009

In 2009, nearly 12 million mobile phones were estimated to be sold in Vietnamese market. Of which, the handsets priced at below two million dong/each accounted for up to 60 percent, those at 5-10 million dong made up 8 percent of volume and 25 percent of turnover while the handsets at 10 million dong per unit only occupied 1 percent in volume and over 10 percent in turnover.

Despite a slow growth, 2009 mobile phone market still surged 20 percent against 2008. The growth rate is forecast at over 30 percent this year along with the clearer separation in product segments.

Recent surveys at big retail shops showed that from 2009, the market share of lines of handsets made in China increased from 10 percent in 2008 to 30 percent in 2009. This made change market share of many suppliers in Vietnam.

Due to the appearance of China made handsets, mobile makers have continuously adjusted the selling price for upgrading competitive strength in the segment of the mobile phones at below two trillion dong. But since the year early, the market segment of below 2 million dong handsets was becoming saturated with some reductions in selling prices.

The blossoming growth of below 2 million dong handset market in 2009 infringed the market share of big brand names like Nokia, Samsung, Sony Ericsson and Motorola. Two mobile phone brand names posting a market share growth in 2009 were LG and HTC.
Dinh Anh Huan-sales director of The Gioi Di Dong (Mobile World) Joint Stock Co said, the distribution channels of his firm or Vien Thong A mainly centralised in big cities for high average turnover.

Cheap mobile phones account for high ratio. The handsets at below two million dong per unit were up to 60 percent of sales all over the network of The Gioi Di Dong. The mobile products made in China will continue contributing a remarkable ratio to the company’s turnover.

Customers presently prefer using the handsets with strong configuration. In addition, the birth of 3G networks is promising the big impacts to the mobile phone using tendency in Vietnam.

Though the 3G services have not satisfied customers, the market share of these 3G equipments is increasing gradually. The market now has nearly 50 models of 3G handsets branded Samsung, HTC, Nokia, Sony Ericsson and LG. In the middle of last year, a handset with 3G chipset was sold at five million dong.

The market also witnessed the efforts of VinaPhone in conjunction with partners to launch Alo 1280 handset model (integrated 3G service package) at 1.6 million dong per unit.

Nokia is the first firm making the debut of cheap 3G handset 2730 at over 2.1 million dong/unit. The price then quickly fell to 1.9 million dong.

Hoang Ngoc Vy, general director of Vien Thong A Co reported, 3G handset products only accounted for 10 percent of the mobile sales at the shop chain in 2009, which is expected to rise to 30 percent this year.

Since the midst of 2009, the intelligent mobile phones, others with Wifi connection, inductive screen and 3G support have been still attractive. The line of products at 5-10 million dong per unit will create more opinions for consumers and bring in about 8 percent of sales volume and 28 percent of revenue to the mobile phone market.

From the start of 2010 to now, mobile firms joined the competition by launching key products and had strategy to broadcast their brand name in the market. Especially after original iPhone handset official appeared in Vietnam, the mobile market seemed to be tenser.

Along with the regular debut of HTC product lines, the Vietnamese market recently saw the impressive introduction of Xperia X10 of Sony Ericsson, Milestone of Motorola, N900 of Nokia, and coming Samsung’s products version Wave or Galaxy S.

TBKTSG

Tags: Vietnam mobile market, Vietnam Telecom