Spending on high-end smartphones up, as total sales dip slightly

August 10, 2017 | 09:30 am GMT+7

The number of smartphone sales declined slightly last month, but consumers continued to spend more on high-end products.


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The July report from GfK showed that the number of sold smartphones decreased in Hanoi, HCMC, Hai Phong and central provinces by 6.2 percent, 9.6 percent, 6.2 percent and 5.7 percent, respectively. The figure rose slightly by 0.5 percent in the north compared with the same period last year.
However, while the number of sold products decreased, the revenue increased slightly thanks to the high number of high-end models sold. 
Manufacturers were focusing on the high-end smartphone segment in the first half of 2017.
A survey conducted by GfK showed that Vietnamese spent VND20 trillion in the first three months of the year on 3.6 million smartphones. The figure was VND17.8 trillion last year in the same period. 
In the first five months of the year, the import turnover of the products was $5 billion.
Observers commented the figures show the high purchasing power, and sales will  soar in the last months of the year, the time when manufacturers launch their new products such as Apple’s iPhone 8 and Samsung’s Galaxy Note 8.
Vietnam is an attractive market for phone manufacturers despite the average income of Vietnamese at over $2,000 per annum. 
In Vietnam, the number of people who want to buy iPhone 7 Plus is nearly twice as many as the number of people who want to buy an iPhone 7. The ratio is 80/20 for the Galaxy S7 Edge and S7. 
Meanwhile, USA Today reported that the ratio of iPhone 7/iPhone 7 Plus buyers in the US when the model hit the shelves was 55/45.
Vietnamese, who have an average income of over $2,000 per annum, prefer premium versions to standard ones. Sony once witnessed the same with Xperia Z and ZL.
“Vietnamese tend to prefer the latest generations of iPhones. But very few of them know how to back up contact lists and use iCloud. Galaxy S8 users, if losing phones, will also lose all contact numbers,” a forum member commented.  
“People would rather spend VND20 million to buy a high-end product than spend VND5 million to buy a lesser known product, though they just use the products to send SMSes and make calls,” he said. “Vietnamese want the product which can help them show off, rather than the product which can help fulfill their work”.