Ho Chi Minh City, Vietnam, October 4, 2012 – According to IDC’s Asia/Pacific Quarterly Mobile 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 of inflation and recession, which have hindered disposable income in Vietnam. Feature phone shipments recorded a significant decline at 20.3% while smartphone shipments fell 4.1% despite the continued migration to smartphones amongst Vietnamese consumers.

"Migration from feature phones to smartphones has been very aggressive in Vietnam," says Võ Lê Tâm Thanh, Senior Market Analyst for Client Devices Research at IDC Vietnam. “As local and Chinese vendors struggle to retain market share in the saturated feature phone space which Nokia dominates, they are now turning to the entry-level smartphone segment where consumers have been quick to take advantage of declining smartphone prices.

Economic problems have also created a barrier to consumer spending, but the downward trend should come to a halt in 2H 2011. “While economic uncertainties have dampened enthusiasm somewhat, we still expect the smartphone market to bounce back strongly in the second of the year as local vendors introduce more affordable smartphones and carriers reduce prices of 3G data 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.

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