Thailand's market for smartphones and tablets is set to grow by 30% to 70 billion baht this year thanks to a tremendous shift in demand from 2G to 3G smartphones, says mobile retail store Jaymart.
SET-listed Jaymart believes the average entry-level smartphone price will sharply decline from 3,900 baht last year to 2,000 baht this year, as operators fiercely compete for customers with the industry moving to a cheaper licensing-based network on the 2.1-gigahertz frequency.
As many as 50 million handsets in Thailand must be replaced once the 3G band is launched, say operators.
Adisak Sukumvitaya, chief executive of Jaymart, said the company will spend 250 million baht adding 60 shops this year, bringing its total to 280 outlets to capitalise on growing smartphone and tablet demand.
"Sales of mobile handsets will reach 20 million units this year, with smartphones accounting for 12 million units," he said, adding smartphones priced 6,000-9,000 baht will be the best sellers.
Jaymart aims to sell 1.5 million mobile phones this year, up from 1.1 million in 2012.
Smartphone sales are expected to contribute up to 70% of Jaymart's total revenue this year, up from 60% last year. Tablets are forecast to make up 20% of the total, with feature phones the remaining 10%.
Senior marketing manager Narathip Wirunechatapant said Jaymart is expanding its product portfolio with the introduction of the premium headphone, Beats by Dr Dre.
The company expects to increase its accessory revenue from 200 million baht to 300 million this year, making up 3% of total revenue.
Jaymart expects total sales revenue to increase by 40% to 11 billion baht this year, up from 8 billion in 2012.
Joe Vatanasombut, managing director for RTB Technology, the local distributor of Beats by Dr Dre, said the popularity of smartphones and tablets is driving headphone growth.
Priced from 8,900 to 17,000 baht, this headphone targets youngsters.
RTB expects headphone sales revenue of 300 million baht this year out of a 1-billion-baht headphone market.
About the author
- Writer: Suchit Leesa-nguansuk
Position: Senior Reporter