Mobile Phones in Malaysia

8/17/2019 Mobile Phones in Malaysia

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MOBILE PHONES IN MALAYSIA

Euromonitor International

August 2011


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M O B I L E P H O N E S I N M A L A Y S I A P a s s p o r t I

© E u r o m o n i t o r I n t e r n a t i o n a l

LIST OF CONTENTS AND TABLES

Headlines ..................................................................................................................................... 1

Trends ......................................................... ................................................................. ................ 1 Competitive Landscape ..................................................... ........................................................... 2 Prospects ..................................................................................................................... ................ 2 Category Data ........................................................ ................................................................. ..... 3

Table 1 Sales of Mobile Phones: Volume 2005-2010 ............................... ................ 3 Table 2 Sales of Mobile Phones: Value 2005-2010 .................................................. 3 Table 3 Sales of Mobile Phones: % Volume Growth 2005-2010 ............................... 3 Table 4 Sales of Mobile Phones: % Value Growth 2005-2010 .................................. 4 Table 5 Mobile Phones Company Shares 2006-2010 ............................................... 4 Table 6 Mobile Phones Brand Shares 2007-2010..................................... ................ 4 Table 7 Sales of Mobile Phones by Distribution Format 2005-2010 .......................... 5 Table 8 Forecast Sales of Mobile Phones: Volume 2010-2015................................. 5

Table 9 Forecast Sales of Mobile Phones: Value 2010-2015............................... ..... 5 Table 10 Forecast Sales of Mobile Phones: % Volume Growth 2010-2015 ................ 5 Table 11 Forecast Sales of Mobile Phones: % Value Growth 2010-2015 ................... 6 Table 12 Sales of Smartphones by Operating System 2008-2010.............................. 6 Table 13 Sales of Mobile Phones by Type of Contract 2005-2010 ............................. 6


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M O B I L E P H O N E S I N M A L A Y S I A P a s s p o r t 1


MOBILE PHONES IN MALAYSIA

HEADLINES Mobile phones register 14% value growth to reach RM2.6 billion in sales for 2010

Improved consumer sentiment boosts sales

Smartphones shows highest value growth at 29%

Average unit price of mobile phones drops from RM673/unit in 2009 to RM664/unit in 2010

Competitive environment continues to be dominated by international companies

Mobile phones is expected to post a constant value CAGR of 5% to reach RM3.4 billion by

2015

TRENDS

Mobile phones saw 14% value growth to record RM2.6 billion in sales for 2010. This growthwas boosted by improved consumer sentiment since the global financial crisis. With mobile

phone usage becoming more and more pervasive, consumers eagerly upgraded to the latest

mobile phone models.

Smartphones saw higher value growth of 29% as compared to feature phones which declined

by 10%. This corresponded with a 50% increase in volume sales for smartphones over a 3%

decline for feature phones. As smart phones advance in computing capabilities and better

connectivity, consumers have readily swapped their feature phones for smartphones. There

was also considerable effort from local telecommunications companies such as Maxis and

Celcom to offer smartphones bundled with attractive phone plans. For example, Celcom

offered its customers the new iPhone 4 with perks such as free 6GB data usage, free calls

within the network as well as free extended warranty.

The unit price of mobile phones dropped from RM673/unit in 2009 to RM664/unit in 2010.

Consumers benefitted from the competition in mobile phones with manufacturers keen to offer

the latest mobile phones at attractive prices.

The most common smartphone operating system in 2010 was Symbian, which was

maintained by Nokia. Nokia phones were extremely common due to their high affordability

and product reliability. Hence they accounted for 47% of smartphone volume sales. However,

2010 saw other competitors closing in. Smartphones featuring operating systems such as

iOS, Android and Blackberry OS climbed steadily in volume shares. This boiled down to the

various smartphones appealing to different users. For example, the iOS-supported iPhone

was popular among those who appreciated Apple’s branding image and the many apps

available. On the other hand, Blackberry OS on the Blackberry appealed to those who

appreciated its function as a personal digital assistant. More consumers were switching from purchasing handsets to monthly subscriptions. This is

because smartphones were still expensive. However, mobile phone operators normally

offered them at a discounted price when users signed up for a subscription. This boosted the

affordability of a smartphone and thus, more consumers have been taking up monthly

subscriptions.

With the host of choices available to consumers, mobile phones have become more

affordable. Mobile phone operators have also taken steps to improve coverage, especially 3G

coverage, as well as reception to boost mobile phone usage. Hence, mobile phones have

become a part of many Malaysians’ lives with function and design emerging as the most


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The Samsung Galaxy Tab as well as future tablets which boast cellular functionality could

rival the demand of smartphones. This is because such devices would have a much better

display. However, having a larger display than mobile phones may also work to its detriment

as it reduces portability.

Android gained a healthy following over the review period and this is expected to continue.Many manufacturers base their smartphones on this operating system. Current brands

include Sony Ericsson, Motorola and HTC. Android has achieved great popularity due to its

user friendliness and software suite which houses integration with Google's proprietary

applications like Maps, Calendar, and Gmail. Android’s main adopters are expected to release

a new extended range of dual-core phones and even incorporating 3D displays into their

products. Hence, the Android OS will see increasing popularity over the forecast period.

The Windows Phone 7 is also expected to perform well on the smartphone market. By

integrating the operating system with third party and other Microsoft services, it brings a new

user experience that other companies might be looking to emulate.

Unit prices for mobile phones are expected to increase over the forecast period as consumers

switch to more expensive smartphones. Manufacturers will be seeking to lower their

production costs in order to increase the affordability of their products in an attempt to

persuade consumers to trade up.

Product launches can expect to perform well in the short-term, especially for smartphones.

With an increasingly wired society, consumers will soon be expecting their phones to provide

even more web-based functions.

CATEGORY DATA

Table 1 Sales of Mobile Phones: Volume 2005-2010

'000 units 2005 2006 2007 2008 2009 2010

Feature Phones 2,813.5 2,769.2 2,527.7 2,610.4 2,272.0 2,203.9Smartphones - 144.5 474.2 794.0 1,183.5 1,775.2Mobile Phones 2,813.5 2,913.7 3,001.9 3,404.4 3,455.5 3,979.1

Source: Euromonitor International from official statistics, trade associations, trade press, company research,store checks, trade interviews, trade sources

Table 2 Sales of Mobile Phones: Value 2005-2010

RM million2005 2006 2007 2008 2009 2010

Feature Phones 1,584.7 1,435.6 1,157.1 1,366.0 913.1 821.7Smartphones - 218.2 629.0 1,189.0 1,412.0 1,821.5Mobile Phones 1,584.7 1,653.8 1,786.1 2,555.0 2,325.1 2,643.2


Table 3 Sales of Mobile Phones: % Volume Growth 2005-2010

% volume growth


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2009/10 2005-10 CAGR 2005/10 Total

Feature Phones -3.0 -4.8 -21.7Smartphones 50.0 - -Mobile Phones 15.2 7.2 41.4


Table 4 Sales of Mobile Phones: % Value Growth 2005-2010

% current value growth2009/10 2005-10 CAGR 2005/10 Total

Feature Phones -10.0 -12.3 -48.1Smartphones 29.0 - -Mobile Phones 13.7 10.8 66.8

Source: Euromonitor International from official statistics, trade associations, trade press, company research,

store checks, trade interviews, trade sources

Table 5 Mobile Phones Company Shares 2006-2010

% retail volumeCompany 2006 2007 2008 2009 2010

Nokia (M) Sdn Bhd 26.5 32.2 35.9 37.1 37.9Samsung Malaysia 22.6 23.7 23.5 23.0 21.1

Electronics Sdn BhdSony Ericsson Mobile 9.8 16.2 17.3 16.0 15.0

Communications ABMotorola Malaysia Sdn Bhd 15.4 9.6 9.4 8.0 7.0

Apple Computer Systems - - - 5.0 6.7Malaysia Sdn Bhd

Research in Motion Ltd 0.5 1.7 2.7 4.1 5.8Siemens Malaysia Sdn Bhd 3.9 - - - -Others 21.3 16.7 11.2 6.8 6.5Total 100.0 100.0 100.0 100.0 100.0


Table 6 Mobile Phones Brand Shares 2007-2010

% retail volumeBrand Company 2007 2008 2009 2010

Nokia Nokia (M) Sdn Bhd 32.2 35.9 37.1 37.9Samsung Samsung Malaysia 23.7 23.5 23.0 21.1

Electronics Sdn BhdSony Ericsson Sony Ericsson Mobile 16.2 17.3 16.0 15.0

Communications ABMotorola Motorola Malaysia Sdn Bhd 9.6 9.4 8.0 7.0iphone Apple Computer Systems - - 5.0 6.7

Malaysia Sdn BhdBlackberry Research in Motion Ltd 1.7 2.7 4.1 5.8BenQ Siemens Malaysia Sdn Bhd - - - -Siemens Siemens Malaysia Sdn Bhd - - - -


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Others 16.7 11.2 6.8 6.5Total 100.0 100.0 100.0 100.0


Table 7 Sales of Mobile Phones by Distribution Format 2005-2010

% retail volume2005 2006 2007 2008 2009 2010

Store-Based Retailing 99.3 99.2 99.1 98.9 98.7 98.5- Grocery Retailers 16.0 16.0 16.0 16.0 15.5 15.1- - Discounters - - - - - -- - Hypermarkets 13.6 13.6 14.0 13.7 13.5 13.3- - Supermarkets 2.4 2.4 2.0 2.3 2.0 1.8- Non-Grocery Retailers 79.0 79.0 78.5 78.5 78.5 78.9- - Electronics and 70.0 70.0 69.5 72.0 75.0 76.4

Appliance SpecialistRetailers

- - Mixed Retailers 9.0 9.0 9.0 6.5 3.5 2.5- Other store-based 4.3 4.2 4.6 4.4 4.7 4.5

retailingNon-Store Retailing 0.7 0.8 0.9 1.1 1.3 1.5- Direct Selling - - - - - -- Homeshopping - - - - - -- Internet Retailing 0.7 0.8 0.9 1.1 1.3 1.5Total 100.0 100.0 100.0 100.0 100.0 100.0


Table 8 Forecast Sales of Mobile Phones: Volume 2010-2015

'000 units2010 2011 2012 2013 2014 2015

Feature Phones 2,203.9 2,049.6 1,824.1 1,368.1 930.3 465.2Smartphones 1,775.2 2,449.8 3,037.8 3,493.4 3,807.8 3,998.2Mobile Phones 3,979.1 4,499.4 4,861.9 4,861.5 4,738.1 4,463.4

Source: Euromonitor International from trade associations, trade press, company research, trade interviews,trade sources

Table 9 Forecast Sales of Mobile Phones: Value 2010-2015

RM million2010 2011 2012 2013 2014 2015

Feature Phones 821.7 690.3 545.3 376.3 240.8 113.2Smartphones 1,821.5 2,295.1 2,777.0 3,082.5 3,252.0 3,300.8Mobile Phones 2,643.2 2,985.3 3,322.3 3,458.8 3,492.8 3,414.0


Table 10 Forecast Sales of Mobile Phones: % Volume Growth 2010-2015


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% volume growth2014/15 2010-15 CAGR 2010/15 Total

Feature Phones -50.0 -26.7 -78.9

Smartphones 5.0 17.6 125.2Mobile Phones -5.8 2.3 12.2


Table 11 Forecast Sales of Mobile Phones: % Value Growth 2010-2015

% constant value growth2010-15 CAGR 2010/15 TOTAL

Feature Phones -32.7 -86.2Smartphones 12.6 81.2

Mobile Phones 5.3 29.2Source: Euromonitor International from trade associations, trade press, company research, trade interviews,

trade sources

Table 12 Sales of Smartphones by Operating System 2008-2010

% retail volume2008 2009 2010

Windows 11.0 5.2 5.5iOS 14.6 15.0 Android 14.0 19.0Symbian 75.0 51.7 46.7

BlackBerry OS 11.5 12.0 13.0Other 2.5 2.5 0.8Total 100.0 100.0 100.0


Table 13 Sales of Mobile Phones by Type of Contract 2005-2010

% retail volume2005 2006 2007 2008 2009 2010

Monthly Subscription 11.3 14.2 16.0 17.8 20.7 22.6

Pay as You Go 0.7 0.8 1.0 1.2 1.3 1.4Phone Only 88.0 85.0 83.0 81.0 78.0 76.0Total 100.0 100.0 100.0 100.0 100.0 100.0


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Mobile Phones in Malaysia