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Vietnam mobile phone market continued its freefall as economic problems persist
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Vietnam mobile phone market continued its freefall as economic problems persist


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  • 1. Vietnam Mobile Phone Market Continued Its Freefall as Economic Problems Persist 04 Oct 2012Ho Chi Minh City, Vietnam, October 4, 2012 – According to IDC’s Asia/Pacific QuarterlyMobile Phone Tracker, the Vietnam mobile phone market experienced a sequential decline of 18%in the second quarter of 2012 but still registered double-digit growth of 10.9% year-on-year(YoY). This freefall can be summarily attributed to the pause in consumer purchasing in light ofinflation and recession, which have hindered disposable income in Vietnam. Feature phoneshipments recorded a significant decline at 20.3% while smartphone shipments fell 4.1% despitethe continued migration to smartphones amongst Vietnamese consumers."Migration from feature phones to smartphones has been very aggressive in Vietnam," says VõLê Tâm Thanh, Senior Market Analyst for Client Devices Research at IDC Vietnam. “As localand Chinese vendors struggle to retain market share in the saturated feature phone space whichNokia dominates, they are now turning to the entry-level smartphone segment where consumershave been quick to take advantage of declining smartphone prices.Economic problems have also created a barrier to consumer spending, but the downward trendshould come to a halt in 2H 2011. “While economic uncertainties have dampened enthusiasmsomewhat, we still expect the smartphone market to bounce back strongly in the second of theyear as local vendors introduce more affordable smartphones and carriers reduce prices of 3Gdata plans." adds Thanh.Top Three Mobile Phone Vendors in Vietnam in 1Q12 Nokia finished the second quarter of 2012 as the overall market leader, as its shipments accounted for more than half of all mobile phone shipments in Vietnam. Nokia’s performance was driven by the success of its dual-SIM and low-cost phones, while its Lumia series met with a positive reception this quarter. Entry-level Samsung models continued to drive the majority of its smartphone shipments, as Vietnamese consumers remain price-sensitive and cautious amidst tough economic conditions. Strong performance in this segment allowed Samsung to keep dominating the Vietnam smartphone market. Vinaphone raced into the top 3 position, bullishly introducing a large number of new models this quarter to boost its penetration across under-penetrated regions of Vietnam. 1
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