Thailand's Mobile Device Market Will Continue To Expand In 2010

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Thailand's Mobile Device Market Will Continue to Expand in 2010, Says IDC

Strong demand for house brand handsets and smartphones will be the key factor driving shipments for mobile devices in Thailand this year.

Although house brand handsets will remain to be the segment that contributes most to shipment volume in the market, lower margins are expected for vendors. This is due to increasing competition which will force vendors to provide after-sales service on top of offering rich features at prices lower than international brands. To compensate for the loss, vendors will be developing more attractive products, applications and services to increase volume sales.

According to the latest IDC Asia/Pacific Quarterly Mobile Phone Tracker, Thailand's mobile device market posted better than expected shipment growth. Driven by strong demand for entry-level phones and converged devices, the overall market shipment grew 24.2% quarter-on-quarter in 4Q09 and 12.5% year-on-year in 2009.

The economic uncertainties in the past year have resulted in a change in consumers' purchasing behavior. Consumers from low- to middle- income segments have become less loyal to international brands and are increasingly exploring cheaper alternatives from local and Chinese vendors, otherwise known as "house brands".

Wanwadee Tiavongsuvan, Market Analyst for Telecommunication Research at IDC Thailand says, "In 2009, the economic situation clearly hit the buying power of traditional mobile phones from low- to middle- consumer segments. At the same time, there was also a boost in awareness and popularity of smartphones and social networking services. This resulted in greater spending among middle- to high- income segments."

Driven by the popularity of mobile social networking services, IDC expects the smartphones market to boom in Thailand this year. Vendors will be aiming to penetrate both the mass and niche markets and they are becoming more innovative in looking for the right devices and applications to satisfy user demands.

-- The Nation 2010-05-12

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