Low-cost smartphones dominate market

Although Vietnam's mobile phone market has been unable to maintain its previous high growth rate, smartphones continued to be popular last year as vendors launched low-cost models as well as promotions that increased shipments by 75 percent quarter-on-quarter in 2011, according to a recent report from International Data Corporation.
Although Vietnam's mobile phone market has been unable to maintain its previous high growth rate, smartphones continued to be popular last year as vendors launched low-cost models as well as promotions that increased shipments by 75 percent quarter-on-quarter in 2011, according to a recent report from International Data Corporation.

For total mobile-phone shipments, growth last year was 13.6 percent quarter-on-quarter.

With vendors continuing to offer more low-cost smartphones this year, smartphone shipments are expected to maintain an upward trajectory with double-digit growth projected in 2012.

Android smartphones grew 53 percent due to strong performances from Samsung and Sony Ericsson at the end of 2011.

On a full-year basis, the local mobile-phone market has enjoyed 21 percent growth year-on-year. However, local vendors struggled to maintain their market share against stronger international brands in 2011.

Most of the local vendors launched low-cost and dual-SIM feature phones to compete in the market, but the price advantage was not sufficient to offset the larger gap in brand equity.

Nokia leads mobile-phone vendors in the market with a renewed focus on the low-end phone segment. It was able to capture market share in that segment at the expense of local vendors.-VNA

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