Smartphone sales soar on low-cost brands
Sales of smartphones more than tripled year-on-year to 1.6 million units in July-September, led by low-cost devices.
The number is a 128.6 percent rise from the April-June quarter when 700,000 units were sold, according to CyberMedia Research (CMR), a market research firm based in India.
Sales of feature phones that lack advanced functionality of a smartphone also rose in the third quarter -- 6.4 million units were sold with 106.5 percent growth over the second quarter.
On average, the country's handset market grew 108 percent in July-September compared to the previous quarter.
About 7.9 million handsets of both types were sold in the third quarter with a 16 percent rise year-on-year.
Bangladesh continues to show consistent growth in both feature and smartphone segments. This is among very few Southeast Asian markets where growth is seen in both segments, the CMR said in its quarterly mobile handsets market review.
Smartphones account for more than 20 percent of the total handset sales in Bangladesh.
“Comparing the results of 2014 with 2013, the impetus to the market is mainly from the smartphone segment, as compared to feature phones, although the latter has also recorded healthy growth,” Tanvi Sharma, an analyst at the CMR, said.
She said the huge growth in sales of smartphones highlights the strong opportunity the market is offering to handset vendors and solution providers.
"It is also an opportune time for local brands such as Symphony and Walton," Sharma said in a report.
Bangladesh's growth in smartphone sales is much higher than the global average. Smartphone sales across the world rose 20.3 percent year-on-year to 301 million units in July-September, market researcher Gartner Inc said on Monday.
With a 36 percent share, Symphony Mobile is the leader in the mobile handset market, thanks to its strength in the smartphone segment where it has a 53 percent share. Symphony began to sell smartphones in 2012.
The company that was launched in 2008 became the market leader in the handset segment in 2010, mainly due to its aggressive pricing strategy and a strong distribution network.
In the country's handset market, Symphony, Walton and Maximus -- all local vendors -- are in the leadership positions, while Nokia and Samsung are the top international brands with a significant presence.
However, Symphony might face challenges in retaining its market share.
“Now as the Bangladesh smartphone market continues to show strong growth, it will be increasingly challenging for Symphony Mobile to retain its share," said Faisal Kawoosa, lead telecoms analyst at the CMR.
Bangladesh is one of the fastest growing mobile markets -- mobile phone subscription reached around 119.62 million at the end of November, according to Bangladesh Telecommunication Regulatory Commission.
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