Canalys: Malaysia's smartphone shipments reached 687,000 units in February, a year-on-year increase of 10%

Zhitong
2024.04.08 05:56
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In February, Malaysia's smartphone shipments reached 687,000 units, a year-on-year increase of 10%. The top five smartphone manufacturers include vivo, Apple, Transsion, Samsung, and others. Vivo ranks second with a market share of 13%, while Apple saw a strong year-on-year growth of 168% and topped the sales chart. Transsion recorded a year-on-year growth of 169% and ranked fourth in terms of shipments. Samsung's shipments increased by 12%, with a 22% growth in sales, placing it fifth. Market dynamics indicate that smartphone manufacturers are intensifying price competition, using channel incentives to boost shipments and market share

According to the Zhitong Finance and Economics APP, Canalys analyst Zhou Shengyong stated that in February 2024, the year-on-year growth of smartphones in Malaysia reached 10%, with shipments totaling 687,000 units. Manufacturers took measures to increase sales and normalize inventory in the fourth quarter of 2023 to create room for growth in the first quarter of 2024. Driven by the peak of smartphone shipments in 2021 and the natural replacement cycle, the smartphone market in 2024 will continue to grow.

In February, the top five smartphone manufacturers in Malaysia include vivo, Apple (AAPL.US), Transsion, Samsung, and others. Specifically:

  • vivo ranked second, capturing 13% market share with shipments of 92,000 units. Its flagship model Y100 5G, priced at 1,199 Malaysian Ringgit (approximately $250), seized the opportunity of the country's increasing 5G penetration rate.

  • By expanding sales channels and introducing the telecom operator Yes Mobile, Apple ranked third in shipments, with a strong year-on-year increase of 168% to 86,000 units, also leading in terms of sales revenue. However, the significant price reduction of the iPhone 15 series earlier this year indicates that market demand remains relatively weak compared to shipment growth.

  • Transsion ranked fourth in shipments, with a 169% year-on-year growth to 82,000 units. Its Infinix Hot 40 series and Tecno Spark 20 series, among other popular and cost-effective models, have been well received by small-scale distributors in the open channel.

  • Samsung ranked fifth in shipments with a 12% growth, but its sales revenue increased by 22%, ranking second. With flagship models like the Galaxy S24 series and mid-to-high-end models A35 and A55, Samsung's sales revenue is expected to increase significantly in the first quarter of 2024.

Market Dynamics

In the entry-level market, smartphone manufacturers are intensifying price competition, using channel incentives to boost shipments and market share. Core configurations, pricing strategies, and channel profits are key factors for the success of models priced below 1,000 Malaysian Ringgit (approximately $200), with 5G functionality increasingly becoming a selling point in the price range below 1,400 Malaysian Ringgit (290 US dollars). Popular models like vivo's Y17s and Xiaomi's Redmi 12 have successfully found a balance between these factors.

For high-end smartphones, providing customers with a seamless omnichannel purchasing experience is becoming increasingly important. This requires manufacturers to fully understand customers' purchasing experiences in online and offline channels, and then create a smooth and consistent experience. Samsung stands out in this regard, offering customers the option to pick up orders in physical stores through its official website Although most of the marketing activities for the Galaxy S24 are online, Samsung's extensive authorized store network also provides customers with prototype experiences for testing features such as real-time translation and other Galaxy AI functions.

Market Outlook

Canalys predicts that the smartphone market in Malaysia will grow by 9.5% year-on-year in 2024, reaching 9.8 million units. With retail margins continuing to shrink, channels will further consolidate. Telecommunication operators and large retailers will gain more market share, while small independent resellers will be squeezed out of the market. In addition to their advantages in infrastructure and financial resources, large retailers and telecommunication operators can better control customer replacement cycles through installment plans, data packages, and other sales activities.

The continued penetration of high-value 5G devices remains an important growth factor, especially as mainstream telecommunication operators themselves offer 5G devices. Furthermore, telecommunication operators are also including 5G data packages for free in most prepaid data plans. The popularization of 5G in the prepaid market is expected to stimulate demand for high-value 5G devices, expanding the reach of 5G from telecommunication operators to open channels. Smartphone manufacturers will increase their cooperation with telecommunication operators such as Maxis, CelecomDigi, and Hotlink to introduce their high-value 5G product portfolios to the mass market

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