Apple's iPhone Dethroned While Smartphones Set to Surpass Feature Phones in Malaysia by 2014

Published on: 13th Sep 2012

­Smartphone sales in Malaysia are set to represent 35% of the total mobile phone shipments in 2012, compared to 30% in 2011, and are forecasted to exceed 50% by 2014. IDC attributes the growth of smartphones in the nation to the increasing popularity of Android handsets and decreasing prices of entry-level smartphones.

Ryan Lai, Associate Market Analyst for Mobile Phone and Tablet research at IDC Asia/Pacific says, "In a segment previously dominated by Apple's iPhone, 2Q12 saw the iOS device dethroned as the king of high-end smartphones (more than RM1,500) for the first time since 2Q10 by Samsung's Galaxy S III. The feat is even more significant considering that the Galaxy S III only arrived in the later part of 2Q12. However, Apple is set to rebound in the fourth quarter of 2012 when it releases its new iPhone in Malaysia."

HTC also experienced a breakout quarter in the smartphones segment, with its flagship model the One X placing third behind the iPhone. Overall, the high-end smartphone segment grew 33% in 2Q12 as compared to the same period last year and IDC expects the trend to continue into 2013.

Ryan adds, "We are witnessing a change in market dynamics. A growing number of Malaysian consumers now view Android smartphones to be as prestigious as the iPhone. Further growth in this segment will no longer be solely dependent on Apple, but will include Android vendors, mainly Samsung, HTC and Sony."

Falling prices of entry-level smartphones are also eroding shipments of feature phones, particularly those priced above RM200. In the first half of 2012, 24% of smartphones shipments in Malaysia were priced below RM600, up from 14% in 2011. Ryan continues, "The main value proposition of a midrange feature phone is that you get smartphone-like features in a more affordable package. However, smartphone prices have fallen to such a point where many consumers themselves are asking why they would buy a smartphone-like device when with a little more money, they can get the real deal."

 

Tags: [Malaysia]