IPrice Group's new research shows that Huawei's smartphone selling prices are showing signs of mass decline at ASEAN regional e-commerce floors (Photo Source: iPrice Group).
Discounts happen suddenly
On the basis of new research results, price comparison and search platform iPrice Group said, nearly a month after the US government passed a ban on Huawei, the technology company faced With a series of bad news, the selling price of Huawei smartphones is showing signs of mass decline at e-commerce floors.
Report on the price of Huawei smartphone products in about 1 month has been implemented by iPrice Group according to the method of recording new product prices at e-commerce floors throughout the country (excluding short promotions) term), then averages and compares between times. For the Vietnamese market, iPrice chose to analyze 10 Huawei smartphone models in various segments and officially launch from 2018 up to now.
Detailed results show that in Vietnam, at 3 weeks after the ban, the majority of Huawei smartphone products are currently sold at a discount of 200,000 VND or more. Although this number only accounts for 1% to 3% of the total product price, but notably because of the report of this report, before the ban, these products are mostly on the rise. .
Chart of selling prices of smartphones affected by the ban (unit: million dong)
The sudden change in this price trend shows that the ban has a negative impact on market prices as well as the value of Huawei products in the eyes of consumers.
More specifically, among the 10 iPrice smartphones selected by Huawei, 5 product lines started to appear to be discounted, the two lines were halted before and only 3 product lines increased or not. Any changes after 3 weeks.
Chart of selling prices of smartphones not affected by ban (unit: million dong)
Particularly for the Huawei Mate 20, although it was only released in October 2018, during the three-week period after the ban took effect, the average selling price of this product fell to 4.7 million. VND, down to only about 16 million dong. Similarly, the more advanced version of this line, Mate 20 Pro, also dropped 200,000 VND, to 21.8 million.
Commenting on the unusual price reduction of these two models, the representative of iPrice Group said it could be due to the resonance from the ban on Huawei and the information of Huawei Mate 30 Pro, the next version of 2. This line, will be ready for release in a few months.
Influence from medium to high-end models
The common point of the affected models in this price reduction is that most of them are in the price range of 7 million VND or more, while the lower priced ones are almost unaffected.
This phenomenon shows that consumers still have a high demand for low-priced Huawei models but have begun to slacken their hands on higher-priced models, including flagship models like Huawei P20 Pro.
This is understandable because although Google has confirmed to continue to support and provide Google Play services for Huawei devices in the market, consumers will definitely not feel insecure for the future. hybrid of these products, leading to reluctance to spend money on middle and high-end models.
This reaction of the market may be temporary. However, with only about three months left, Huawei's new high-end smartphone, Mate 30, will be released, which is a bad news for the upcoming business of this technology company in Vietnam.
Vietnam market reacts more strongly than other countries
Research on the price of iPrice is done simultaneously in 6 Southeast Asian countries. Accordingly, after only three weeks from the effective date of the ban, the selling prices of seven Huawei smartphones selected by iPrice have decreased by 28 USD in Vietnam, 36 USD in Indonesia and 38 USD in the Philippines, respectively. . Meanwhile, the selling prices of the same products in the remaining three countries, Thailand, Malaysia and Singapore, have decreased slightly.
Chart of fluctuations in selling prices of Huawei smartphones in Southeast Asia before and after the ban (unit: USD)
Explaining this difference, iPrice experts say the reason for the Huawei brand has traditionally been more popular and influential in the three countries than in Vietnam. Specifically, according to the May 2019 data of Statcounter Global Stats, Huawei accounted for more than 10% of the smartphone market share in Thailand, Malaysia and Singapore but only accounted for 3.13% and ranked 5th in Vietnam. .
Data on mobile phone market share in Vietnam as of May 2019 (Photo source: Statcounter Global Stats)