VietNamNet Bridge - The cell phone market growth of 2010 is not high as expected, but the appearance of many first-class models or low-price products with wifi connection makes the market more bustling.


Last year, cell phone sales in the Vietnamese market did not grow by 40% as forecast by traders and researchers but increased by only 30%. This growth rate was higher than the 25% rate of 2009 but far lower than previous years’ rates of 70-100%.

More than 1.03 million mobile phones, statistics of a market research company show, were sold countrywide in November 2010, 28% higher than November 2009. By November 2010, the country’s sales volume reached 11.3 million units. The increase of cell phone prices made revenue of 2010 go up by 40% compared with 2009.

The country’s biggest market, HCM City, saw nearly 268,200 cell phones sold in November 2010, a year-on-year increase of 18%. This market has almost become stagnant in recent years. Last year, sales in the city did not increase from a year earlier.

Although the HCM City market did not grow fast, it still had the largest share of 26-29%. Hanoi continued to be the second biggest market, with a share of 16-18%.

When the market growth is slow, retail networks are considered to expand but the reality is contrary. Retail chains held a market share of 36% in volume two years ago but this figure was only 30% in November 2010. Retail chains’ market share dropped from 35% in November 2009 to 31% in November 2010. Throughout 2010, the retail chains’ market share in volume did not ascend though many big cell phone retail systems still opened new shops or gave promotions to stimulate the demand. On the contrary, traditional small shops are dominating the market.

Multi-functional products an attraction

Like in previous years, in 2010, handphones worth from VND500,000 to VND1 million apiece still dominated the market, with a share of 25-30%. Products with the price of VND1 million or less each enjoyed a market share of approximately 45%. Phones priced at less than VND2 million apiece won a market share of nearly 70% in volume but only 34% in value.

Compared with the previous years, phones worth VND6 million or higher saw their market share jump from 4% to 6% in volume and 22% to 27% in value. Products of over VND10 million each also had their market share double from 1% in volume, and soar from 9% to 13% in value.

In terms of functions, phones with the MP3 music have increased continuously in sales over the past two years, especially last year. Their market share in quantity was 50% in November 2008 but soared to 62% in November 2009 and 79% in November 2010. Products with the MP3 music have almost caught up with phones with a color screen, holding a market share of 85% in November 2010. Products with bluetooth connection saw their market share in volume grow from 55% to 60%. The market share of products with a camera also increased from 60% to 67%, and of products with two cameras made up 9%.

According to traders, cell phones with wifi connection are enjoying the increasing sales and market share. One reason is that their prices become more reasonable. New trademarks such as Wellcom, F-mobile and K-Touch have launched products with wifi connection. However, the most outstanding product for last year is Nokia C3, which has a QWERTY keyboard and wifi connection, and costs below VND2.8 million. To compete, other firms such as Samsung and LG have also launched new products with wifi connection at below VND3 million apiece.

Last year, many phones with the price of more than VND6 million each also appeared on the market. It is for the rivalry between these two market segments that the cell phone market becomes more bustling while the market growth is slow.

Source: SGT