Manila, Philippines, June 13, 2014 – According to IDC’s Worldwide Quarterly Tablet Tracker, a total of 598,375 tablets were shipped to the Philippines in Q1 2014, translating to a year-on-year growth of 110%–the highest year-on-year growth among countries in Southeast Asia.
Samsung and Apple continue to lead the tablet race in the Philippines, garnering the first and second place, respectively. However, these international players are increasingly facing tough competition from local vendors. Homegrown vendors are steadily gaining ground in the Philippines, with Cherry Mobile and Starmobile being two of the strongest.
“Backed by cash-rich marketing and A-list celebrity endorsements, Cherry Mobile and Starmobile continue to feed the appetite of Filipino consumers for budget-friendly tablets. The rising demand for tablets from these homegrown players will keep the Philippines tablet market on a growth trajectory in 2014,” says Jerome Dominguez, Associate Market Analyst at IDC Philippines.
Aside from local vendors, PC-centric MNCs that recently ventured into tablets are also showing increased aggression in the tablet space.
“International PC vendors, like Lenovo and ASUS, are continuing to bring in entry-level tablets at attractive price points, competing head-on with the offerings of local and Chinese brands. The predatory pricing schemes of these international players are also posing a threat to the more prominent tablet line-ups of Samsung and Apple,” adds Dominguez.
While price remains a primary consideration among consumers in the Philippines, after-sales support is also becoming an important consideration. Defect issues have been plaguing the Philippines tablet market since 2013.
Daniel Pang, Senior Research Manager for Client Devices at IDC Asia/Pacific comments, “The Philippines remains a predominantly budget-conscious market for devices, which explains the high demand for budget tablets among its consumers. The growing competition between international and local tablet brands is good in that it will encourage the players to continue to innovate and improve product quality to stay ahead of the competition.”
IDC is the premier global provider of market intelligence, advisory services, and events for the information technology, telecommunications, and consumer technology markets. IDC helps IT professionals, business executives, and the investment community make fact-based decisions on technology purchases and business strategy. More than 1,000 IDC analysts provide global, regional, and local expertise on technology and industry opportunities and trends in over 110 countries. For more than 45 years, IDC has provided strategic insights to help our clients achieve their key business objectives. IDC is a subsidiary of IDG, the world’s leading technology media, research, and events company. You can learn more about IDC by visiting www.idc.com