Why is brick phones still healthy, accounting for nearly 40% of Vietnam's market share? - Picture 1.

Why is brick phones still healthy, accounting for nearly 40% of Vietnam's market share?

Accordingly, about 600,000 'brick' phones were sold in September 2019, accounting for 37% of the market by volume. However, because the price of this product is just under 1 million, so despite a significant market share, the revenue of brick phones only accounts for 4.7% of the market.

Consumers prefer to buy 'brick' phones online more because they do not have to think too much due to their low price. Most of these products cost less than VND 500,000 (accounting for 80%). The 'brick' phone line sold over 1 million dong, sold very little, behind the whole price line from 500 thousand to 1 million dong.

The market share of 'brick phones' in Vietnam is stable in 2019 and usually stays around 35%. Even recently, the market share of this product line has grown quite impressively, from 34.1% in July to 36.8% in September.

Nokia is a leader in the 'brick' phone business in Vietnam, with a market share of around 55% in recent times. In particular, this once famous phone company accounted for more than half of the best-selling feature phones in Vietnam in September. Ranked No. 2 in this market belongs to a Vietnamese phone brand. Masstel name with about 14-15% market share.

The 'brick' phone information still accounts for a significant part of the Vietnamese market and has grown, surprising many people. Because a lot of phone companies today have focused on making low-end smartphones. Customers only need to spend about less than 2 million to be able to own a smartphone.

However, according to GfK, the 'brick' phone is favored by having 2 SIM support, for every 8 people who buy feature phones in September 2019, 8 will pay attention and choose phones that support 2 SIMs. This makes many phone companies today focus on the dual SIM feature on the product.

According to many experts, the 'brick' phone will remain 'healthy' for at least a few more years because the price is very cheap and meets the minimum needs like listening and calling. In such product lines, people are concerned about the price, the lower the price, the more buyers will pay less attention to quality. That is why brands from China are 'very anonymous' but still exist.

The evidence for the cheap appeal to users is that the best-selling product models often cost less than VND 500,000. Itel brand ranked third in the 'brick' phone market share thanks to products priced below VND 200,000 such as Value 100 and IT2161. Along with that, the best selling device in the market is Nokia 105, which costs only VND 350,000.

In early October 2019, the Ministry of Information and Communications announced it would turn off 2G signals by 2022 to save national resources and accelerate the digital transformation. At that time, the 'brick' phones that only support 2G waves (the dominant type in the market) will stop working and can no longer perform basic functions such as making calls and calls. Many people predict that 2022 will be the end of a 'brick' phone in Vietnam.

However, seemingly grasping this, many 'brick' phone makers have now launched feature phones that support 4G. With the significant growth momentum, the very cheap price as well as the sharpness of manufacturers, it seems that the 'brick' phone is still living and healthy in Vietnam.

Leave a Reply

Your email address will not be published. Required fields are marked *