5G-enabled smartphones and the rise of online sales are expected to propel Thailand's smartphone market this year with a projected growth of 4%, says Counterpoint, a global tech research company.
Thailand's smartphone shipments grew 18% year-on-year in the second quarter of this year, Counterpoint indicated.
"The rise was attributed to a slowly recovering economy after the second wave of Covid-19 and availability of mid-tier 5G devices as well as higher online penetration," Glen Cardoza, senior analyst at Counterpoint, told the Bangkok Post.
Oppo became Thailand's leading smartphone brand in the second quarter with a 21% market share. Xiaomi and Samsung held a market share of 20% each, followed by Vivo with 18% and Realme with 9%.
Xiaomi saw the strongest growth due to its increasing offline reach, introduction of the affordable 5G Note series, and growth from its sub-brand POCO, he said. Xiaomi rose from fourth position in the second quarter of 2020.
Samsung maintained its focus on the premium Galaxy S-series and the affordable A-series throughout the quarter. Vivo pushed its 5G models like the V21 5G and Y52 5G.
According to Mr Cardoza, the rise of Covid-19 cases and modest vaccination rates could lead to an 8% year-on-year drop in shipments in the second half.
Throughout this year, however, smartphone shipments could still see a growth of 4% year-on-year, he noted.
"Covid-19 resurgence is the biggest factor for deceleration in this market," he said, adding that smartphone makers will be cautious about the volumes they plan for the second half due to the ongoing component shortages in the industry.
Thailand has the highest proportion of 5G smartphones in Southeast Asia, Mr Cardoza said. This is attributed to the swift rise of 5G infrastructure and telecom initiatives over the past year and a half.
Locally, three main operators -- Advanced Info Service (AIS), True Corporation and Total Access Communication (DTAC) -- are racing to cover the country with 5G connectivity, he said.
DTAC has been busy covering all provinces with its 700MHz spectrum while AIS has been partnering with other ecosystem players like OTT platforms to provide more value in its packages.
According to him, 5G compatible smartphones made up 34% of the shipments in Thailand in the second quarter.
"We could see a healthy 42% 5G smartphone proportion by year end," said Mr Cardoza, noting that reducing prices of 5G devices are an incentive to the consumer in this situation.
The online share of smartphone shipments continues to rise this year.
In the second quarter, online shipments made up 19% of the total shipments. Overall online volumes increased by 50% compared with the same quarter a year earlier.
The online share of shipments could surpass 25% by year-end, he added.