Staff Reporters
Jul 16, 2012

Smartphone demand surges in the Philippines: GfK

MANILA - Smartphone usage in the Philippines grew at a fast clip between January and May this year, says a new report by market research company The GFK Group.

GfK: Five-fold YOY increase in smart phone sales in the Philippines
GfK: Five-fold YOY increase in smart phone sales in the Philippines

With the average price of smartphones down 23 per cent in the region, five times as many smartphones were sold in the first five months of the year, compared to the same period last year.

According to the report, of the 5.5 million mobile phones sold during the period valued at approximately USD 606.5 million, smartphones contributed to 30 per cent of the volume and 66 per cent of the value.

"Basic feature phones grew in sales volume by 30 per cent, but it was the smartphone segment with its 408 per cent spike in demand that has been stirring up the industry," says Benny Villanueva, general manager at GfK Philippines.

Villanueva attributes such exponential growth to a host of factors including promotional activities from network providers and retailers, improved internet connectivity and the lure of free wi-fi in public areas.

And there's scope for more.

"While Singapore and Malaysia have already reached high smartphone penetration levels, the Philippines market still presents a lot of potential for smartphone makers," he adds.

At present, smart phone penetration in the Philippines is 29 per cent, while mature markets like Singapore and Malaysia touch 90 per cent.

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