Counterpoint: Vietnam's smartphone shipments in Q2 2022 reached 3.2 million units, down 1% year-on-year

• Smartphone shipments in Vietnam fell 1% year-on-year to 3.2 million units in Q2 2022.
• Shipments of high-end smartphones (>US$400, approximately RMB 2,736) increased by 75% year-on-year .
• Among all high-end smartphone brands, Apple's shipments increased by 115% year-on-year.
• Shipments of most major Chinese mobile phone brands in the Vietnamese market have been declining.
• The offline mobile phone purchasing market has picked up, and major mobile phone brand manufacturers have opened more retail stores.

Source: Counterpoint Research Monthly Vietnam Smartphone Channel Share Tracker, Q2 2022

Source: Counterpoint Research Monthly Vietnam Smartphone Channel Share Tracker, Q2 2022

Samsung's growth was flat, with shipments up just 3% year-on-year . Considering it is mired in excess inventory and has had to cut production at its factories in Vietnam. Samsung's introduction of mid-range and low-end models in the A and M series helped it maintain its market share. Samsung's high-end S series was one of the best-selling models in the high-end mobile phone market this quarter.

OPPO 's new mid-range models performed well in the market, making it the only Chinese mobile phone manufacturer to increase its shipments by 25% year-on-year . On the contrary, other companies such as Xiaomi, vivo and realme saw a year-on-year decline in mobile phone shipments as they struggled to cope with higher backlogs of inventory.

As Vietnamese people prefer high-end smartphones, Apple's shipments this quarter increased by 115% year-on-year , the highest growth among all mobile phone brands. Apple is increasing its retail stores in Vietnam through official distributors, a move that will help Apple expand its customer base.

Vietnam's smartphone market is dominated by the offline market. Therefore, mobile phone brand manufacturers are opening more retail stores across Vietnam. Major distributors in Vietnam continue to build new physical stores of mainstream mobile phone brands, which contribute to the majority of sales, and Samsung and Apple's top rankings on the shipment list confirm this. Research analyst Akash Jatwala said: " Driven by the iPhone 11 , iPhone 13 Pro Max and Galaxy S series, mobile phone shipments in the high-end price range ( > US$400, about RMB 2,736 ) increased by about 75% year-on-year . Vietnamese consumers have shown a high enthusiasm for high-end smartphones. In addition, Apple recently reduced the price of older iPhones in Vietnam , making it one of the cheapest iPhones in the world . Vietnam is becoming one of Apple's key markets in Southeast Asia. "

Major mobile phone brands have also gradually increased their activities in the field of smartphone manufacturing and have also begun to increase their investment in Vietnam. For example, Xiaomi has begun to cooperate with DBG Technology to produce smartphones in Vietnam, while Apple's partner Foxconn produces AirPods and iPads in factories in northern Vietnam to increase Apple's product line. Samsung, which produces most of its smartphones in Vietnam, plans to increase its investment in Vietnam and expand its mobile phone supply chain.

For the second half of 2022 , our expectations for Vietnam's smartphone market tend to be conservative. We expect mobile phone shipments to grow in the last quarter. Currently, Vietnam is in a buffer and immunity zone from major macro issues, and inflationary pressure is not large even though manufacturing activities are increasing. But in the second half of the year, the economy may be affected to some extent by macro issues. Considering the pressure of global inflation, manufacturing activities may be affected by rising raw material prices, and consumers' consumption preferences will shift to other necessities. We expect local demand for mobile phones to recover in the fourth quarter, driven by mass consumer spending and new iPhones before the Lunar New Year.