Price categories of smartphones in the Philippines.
According to market research firm IDC, Filipinos are now buying more expensive smartphones.
The average selling price of smartphones in the country last year is around ₱7,000.00. Now, it increased to around ₱10,000.00! Smartphones in this price range are categorized as mid-range.
Smartphone usage has become heavier. Filipinos have been accustomed to using their smartphones in accessing the internet, taking pictures, watching videos and playing resource-intensive games.
Polyne Gallevo, a market analyst from IDC Philippines says, “the higher average selling price indicates that end users are willing to invest in a phone with better specifications and features to suit their latest needs”.
Budget smartphones with laggy performance have fallen out of favor. Filipinos are now more willing to spend more for a better smartphone.
Another reason why Filipinos are now buying more expensive smartphones is the rise of financing companies. Two well-known examples are Home Credit and Flexi Finance.
These companies offer installment plans for smartphones without a telco contract. All they need is a valid ID card and a proof of income such as a company payslip.
“Filipinos remain to be price conscious and want to ensure they get the best value of their money,” Gallevo adds.
Source: IDC