The launch of Apple Inc's range of iPhone 15 models will help stimulate the growth of smartphone sales in Thailand in the fourth quarter, according to analysts and a mobile phone distributor.
Apple and Samsung mobile devices still dominate Thailand's premium smartphone market.
Apple introduced its latest iPhones on Tuesday, which are the iPhone 15, 15 Plus, 15 Pro and 15 Pro Max.
In terms of availability of the new models, Thailand is among the first tier of countries. The new iPhone 15 models will be available for preorder in Thailand from tomorrow and will be widely available from Sept 22. The starting price of the iPhone15 Pro Max is 48,900 baht, while the 15 Pro costs 41,900 baht, according to Apple Store Thailand's website.
"The iPhone 15 series should be a contributor to growth as the Apple brand strongly resonates with Thai consumers and high-end users will likely be attracted by the new features and selling points," said Apirat Ratanavichit, a market analyst at IDC Thailand.
High-end users are likely to be attracted by the use of titanium in the iPhone 15 Pro series, the performance of the new 48MP camera as well as the increased chip performance. In the Thai market, the Pro series consistently performs much better than the standard models.
In the first quarter of this year, the premium mobile phone segment performed well due to strong consumer demand for the iPhone 14 series as well as a good response to the launch of the Samsung Galaxy S23 and S23 Ultra. The premium segment was less affected by the rate of inflation.
In the second quarter, the market dynamic shifted more towards the lower-mid range segments and the premium segment did not perform well as consumers were likely holding out for the new iPhone release in the third quarter.
The premium smartphone segment, representing those priced at over US$800, is largely dominated in Thailand by Apple and Samsung with Apple having a market share of roughly 70%, followed by Samsung with a market share of roughly 20%, according to IDC Thailand.
Mr Apirat said IDC is expecting flat growth year-on-year for the Thai smartphone market in the final quarter of 2023, which should put an end to the year-on-year declines in the previous quarters of 2023.
"For 2024, we are expecting the market to rebound due to stimulus policies from the new government resulting in increased consumer spending."
In the first half 2023, the share of the premium segment in Thailand accounted for 15% of the market, up from 10% in the corresponding period last year.
Glen Cardoza, senior analyst of Counterpoint Research, said Apple's launch event did not yield many surprises but it was a solid showing both across its base iPhone models through to the Pro Max.
"We see an opportunity for continued average selling price strength with the base model looking to be a seriously strong upgrade for many, and the top-end model bringing smart titanium luxe and a powerful 5x optical zoom to the table."
The launch of the iPhone 15 will have a positive impact on the country's smartphone market in the coming quarters. The Thai market is already one of the best performers in the region for Apple. But a good performance by the iPhone 15 series will not be sufficient for the country's smartphone market to rebound, he said.
Apple saw a 29% year-on-year growth in the second quarter of 2023 in Thailand, the highest among the top 5 brands, but its share was just above 10% in the second quarter of 2023. The first half of the year was hit by macroeconomic problems.
But there have been positive signs for Thailand, which is one fastest recovering economies in the region. Tourism has a big part to play in the country. However, this year, smartphone volumes are likely to revive slowly, Mr Cardoza said.
Other brands like Xiaomi, Oppo, Vivo and Realme have been cautious in terms of launching new smartphone models in the premium price segment. So, while the demand persists in the premium segment, a lack of options for consumers has slightly impacted this segment.
It is also possible that many users of premium Android smartphones would have switched to Apple over the last few quarters.
Dusit Sukhumvithaya, chief executive of JayMart Mobile Plc, said the new iPhone15 is expected to receive an enthusiastic welcome from Apple's fan base, particular early adopters who use the existing iPhone14 models.
"The only concern is sufficient availability of supply as the volume needs to be allocated among the first-tier countries," he said.
In the first half of 2023, overall smartphone sales in Thailand contracted 10% while the value increased by 1%. Sales in 2023 are expected to reach 12-13 million units.