In the first quarter of this year, Thailand’s smartphone market experienced a 2% decline due to the sluggish economic recovery, as outlined in a research paper.
The introduction of the government’s digital wallet initiative is predicted to drive industry growth by 3-5% in 2024, based on the findings of Counterpoint Technology Market Research’s monthly report, the Thailand Smartphone Tracker.
In the initial quarter of 2024, 5G smartphone shipments made up 52% of total smartphone sales, marking a 19% year-on-year increase. This milestone marked the first instance in which 5G smartphone shipments accounted for over half of the total market.
Apple smartphone sales in Thailand soared by 30% year-on-year during the first quarter, propelled by the rising demand for the iPhone 15 model. This model constituted 31% of Apple’s product line in Q1, almost doubling the market share of its predecessor, the iPhone 14.
Xiaomi experienced a 30% year-on-year sales growth, with its $200-$399 category models registering a notable 157% increase in the first quarter.
Despite facing a 15% decrease in shipments year-on-year, Samsung maintained its market lead with an 18% share. The brand faced challenges in the sub-$200 market segment due to intense competition from Chinese competitors.
Samsung concentrated on the mid-range $200-$399 segment, witnessing a 56% year-on-year shipment increase, fueled mainly by models like Galaxy A15 5G, Galaxy A25, and Galaxy A34.
Xiaomi, opting for a diverse product portfolio, achieved success across low, mid, and high-end price ranges. Noteworthy was the surge in shipments within the mid-price segment of $200-$399 following the release of the Redmi Note 13 and M6 Pro series.
The research paper indicated positive growth signs in Thailand’s smartphone market starting in March. Companies are gearing up to launch new devices incorporating the latest technology, such as AI integration, enhanced features, and solutions for extended battery life.
The report suggests that with the rapid expansion of 5G coverage nationwide and increasing consumer acceptance of 5G, shipments of 5G smartphones are likely to continue trending upwards.
Kamal Singh, a research analyst at Counterpoint, mentioned to the Bangkok Post that he foresees progressive growth in the coming quarters, primarily driven by the surge in 5G adoption, festive sales, and the demand for cutting-edge, feature-rich devices.
Should the economy improve, a projected 3-5% year-on-year growth for the year seems plausible. The adoption of 5G technology is gaining momentum in Thailand, with expectations that 5G smartphones might dominate around 60% of the market share by year end.
The first quarter saw low-cost smartphones under $200 claiming 52% of the market share.
Mr. Singh highlighted the expected launch of the digital wallet scheme in the fourth quarter of 2024. He mentioned that this initiative, factored into shipment projections, could result in a significant uptick in shipments in Q4, potentially pushing annual shipments towards the higher end of the 3-5% growth estimate.
The digital handout scheme is anticipated to benefit convenience stores, supermarkets, and hypermarkets mainly but may also trigger a rise in sub-$250 smartphone shipments, according to Mr. Singh.
