VietNamNet Bridge – Oppo and Samsung are dominating the cheap smartphone segment (priced less than VND4 million or $180), which previously belonged to Nokia and other big names.

A phone shop in Hanoi.

While the high-end segment is a race between Samsung and Apple, the low price segment is becoming increasingly more intense.

For products under VND4 million ($180), smartphones are increasingly abundant, gradually replacing basic cell phones, with the appearance of new names, threatening the balance for years.

IDC report shows that in the second quarter of 2015, 51% of phones sold in Vietnam are smartphones, equivalent to about 3.3 million units worth $607 million.

According to statistics of FPT Shop, one of the biggest cell phone distributors in Vietnam, last year the proportion of basic phones and smartphones sold at its chain stores was 4: 6. Up to 7 out of 10 phones of the best-selling models are those priced VND3 - VND6 million ($140-$280).

In just over two years, a series of brands entered this segment. About 1 year ago, the segment for cellphones of less than VND4 million was the playing field of Samsung, with models Galaxy Grand Prime, Core Prime, Galaxy J1 and Lumia 430, Lumina 530 of Microsoft.

According to IDC's report, in 2014, Samsung and Microsoft accounted for 30% and 26% of the market share in this segment, respectively. The rest was divided among dozens of names, most notably Oppo, Asus, HTC, Mobiistar, and Sony.

However, the latest report from GfK in May 2016 showed the dramatic changes of this segment. Samsung grew slightly to 34.7% while Microsoft saw a serious decline, dropping to only 4.7%.

Meanwhile, the market witnessed the spectacular rise of Oppo, from 7% in 2014 to 21.8% of the segment for cellphones priced below VND4 million in May 2016.

Mr. Tran Nguyen Truc from Mobile World, a major cellphone distributor in Vietnam, said the major players in this segment are currently Oppo and Samsung.

Not only cellphones priced VND4 million, most of the models of Oppo and Samsung are taking the lead among the best-selling products on the market. The stars in this group include Oppo Neo 5, Neo 7, Galaxy J5, and A5.

"The new names have changed the game, making significant changes in the market," said Mr. Ba Ngo Duy, manager of a cellphone shop on 3/2 Road, District 10, Ho Chi Minh City. The designs by Oppo, Asus, Xiaomi and the race for configuration has forced Samsung, Sony, and LG to change.

Within the first half of 2016, a series of both unfamiliar and familiar names entered the Vietnamese market such as Flash, Gionee, Intex, Coolpad.

According to experts, the Vietnamese mobile market is forecast to increase by 20-35% this year compared to 2015. In the first 5 months of 2016, 5.8 million phones were sold. Of these, the products priced VND2-VND4 million accounted for nearly 40%. Oppo brand occupied up to two thirds of the market.

Retailers predicted that this segment continued to be a fight between Samsung and Oppo. However, the market will be more complex as Asus and new names join or large manufacturers try to enter.

Nguyen Nam