Commenting on the price range analysis, Senior Analyst Glen Cardoza said, “The $400-$600 segment surged during the quarter because of realme, Samsung, OPPO and Xiaomi’s new launches in the price band. The financially well-off Filipinos now prefer premium smartphones more than ever. Gaming is a major factor as well. The Philippines is also known as the world’s e-sports capital. Not surprisingly, there is high demand for premium gaming smartphones, such as the Black Shark 4 Pro and Asus’ ROG Phone 6 series. E-sports has become a game changer and has affected the purchase decisions of Filipino consumers.” Online channels grew 16% YoY in Q3 2022 and accounted for 20% of the total shipments. Online platforms offered discounts, cashbacks, and easier financing options, which helped these online channels gain more share. Pre-orders along with replacement options and bundling of devices with TWS at a discounted price were some of the other appealing promotions from online channels. realme’s 9 series, Samsung’s Galaxy A53 and A33, OPPO’s Reno8 and Xiaomi’s POCO F4 series were among the most preferred models. 5G smartphone shipments surged 241% YoY in Q3 2022 and accounted for 31% of the country’s total shipments as more consumers upgraded to 5G devices. Major telecom operators have been increasing their coverage and offering lower-cost plans to cater to a wider range of customers in metro areas. Operators have also been working to improve service in the prominent areas as demand for more data increases and as more people upgrade to 5G from 4G devices. As of Q3 2022, Smart was the leading provider of 5G services across the Philippines. Smart and Omnispace have partnered to provide satcom-supported 5G internet in the country. Meanwhile, Globe Telecom has signed two major tower sale deals with Stonepeak and will use the funds raised to expand its network. Globe is constructing the 2,500-km Philippine Domestic Submarine Cable Network which is expected to be completed in 2023. While the impact of the Ukraine-Russia war has eased, rising inflation continues to weigh on the Philippines economy. However, consumer demand remains comparatively high as the government has been taking preventive measures to boost the service and industry sector. About 95% of the country’s GDP relies on these two sectors. During the quarter, goods and services exports increased to a one-year high of 13.1%, while the unemployment rate fell due to favourable labour market dynamics. We are optimistic about Q4 2022 as the holiday season arrives. The popularity of premium smartphones will be an advantage, and the recently launched iPhone 14 series will boost Apple’s shipments. However, the country’s overall shipment growth may likely remain flattish for Q4 2022 as well. Background Counterpoint Technology Market Research is a global research firm specializing in products in technology, media, and telecom (TMT) industry. It services major technology and financial firms with a mix of monthly reports, customized projects, and detailed analyses of the mobile and technology markets. Its key analysts are seasoned experts in the high-tech industry. Analyst Contacts Glen Cardoza Follow Counterpoint Research press(at)counterpointresearch.com