• Vietnam’s Q2 2022 smartphone shipments declined 1% YoY to 3.2 million units.
• Premium smartphones’ (>$400) shipments saw a growth of 75% YoY.
• Among the top OEMs, Apple’s shipments increased 115% YoY.
• Most major Chinese brands saw a decline in their shipments.
• Offline channels picked up with brands opening more retail stores.

Jakarta, London, Boston, Toronto, New Delhi, Beijing, Taipei, Seoul – August 23, 2022

Vietnam’s Q2 2022 smartphone shipments remained nearly flat, falling 1% YoY to 3.2 million units, according to Counterpoint’s latest Monthly Vietnam Smartphone Channel Share Tracker. The numbers reflect the country’s macroeconomic stability, with moderate inflationary pressure, and increased customer spending due to its markets regaining normalcy. Increasing exports amid geopolitical conflicts and COVID-19 lockdowns in China also helped the economy. New launches, along with customer preference for premium models, played a pivotal role in the Q2 smartphone shipments.

Vietnam Smartphone Shipment Share by Key OEM, Q2 2022

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

Demand for budget devices was moderate during the quarter. High-end smartphone shipments saw big growth along with gaming-focused ones.

Premium Segment (>$400) Smartphone Shipment Growth, Q2 2021 vs Q2 2022

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

Samsung’s growth was nearly flat at 3% YoY as it was struggling with inventories and had to cut production at its Vietnam factory. Samsung launched low-to-mid-end devices in its A and M series, which helped the brand maintain its market share. Its high-end S series models were among the bestsellers in the premium category during the quarter.

OPPO was the only Chinese player to see positive growth of 25% YoY as its newly launched mid-end models fared well in the market, whereas other players like Xiaomi, vivo and realme saw a YoY decline in their shipments as they were struggling with higher inventories.

Apple, at 115% YoY, saw the biggest growth during the quarter with Vietnamese people preferring premium smartphones. Apple is increasing its stores in Vietnam via official distributors, which is helping the brand to expand its customer reach.

Vietnam’s smartphone market is dominated by offline channels. Therefore, OEMs are opening more retail stores across the country. Major Vietnamese distributors are opening mono-stores of major brands, which are driving most of the sales, with Samsung and Apple leading the chart. Research Analyst Akash Jatwala said, “The premium price band (>$400) grew around 75% YoY driven by the iPhone 11, iPhone 13 Pro Max and Galaxy S series. Vietnam’s people are passionate about premium smartphones. Besides, Apple has recently reduced the prices of older iPhone models in Vietnam, making them among the cheapest in the world. Vietnam is becoming one of the major markets for Apple in Southeast Asia.”

On the smartphone manufacturing side, activities are increasing and OEMs are raising their investments in the country. Xiaomi has started manufacturing smartphones in Vietnam in partnership with DBG Technology. Samsung, which makes the bulk of its smartphones in Vietnam, plans to increase its investment in the country while expanding the supply chain.

For the second half of 2022, we have moderate expectations for the Vietnamese smartphone market. We expect the last quarter to see shipment growth. At present, Vietnam is cushioned from major macro issues and there is not much inflationary pressure, even as manufacturing activities are increasing. But in the second half, the economy may be affected by macro issues to some extent. Manufacturing activities may feel the impact of raw material price increases due to global inflationary pressures, with consumer preference shifting to other essentials. We expect the local demand to revive during the last quarter, driven by the Lunar New Year consumer spending and Apple’s new iPhone launch.

Background

Counterpoint Technology Market Research is a global research firm specializing in products in the TMT (technology, media, and telecom) 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

Akash Jatwala

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