Colombo, Sri Lanka
Sri Lanka mobile device market has observed a surge in sales in CY 2014. Noticeably, the smart phone business has been growing exponentially year-on-year and Q4 2014 was no exception.
According to International Data Corporation (IDC), the overall mobile phone market in Sri Lanka touched 1 million mark in Q4 2014. Smart phones contributed approximately 22% to the overall mobile phone market as the demand observed a continuous surge in the year. The data however, is exclusive of grey imports that are shipped to the country through illicit channels.
Jaideep Mehta, Managing Director, IDC South Asia expressed his delight, “Sri Lanka is becoming increasingly an important IT market, and IDC is seeking to fulfil its mission of entering markets ahead of the curve, and then producing world class market intelligence for the benefit of its customers. This move will bring us closer to the local markets and ensure accurate tracking of important IT domains.”
Globally, there has been a rapid migration of end users from feature phones to smart phones and Sri Lanka is no exception. The feature Phone category continued to plummet both sequentially and annually to reach approximately 78% of the overall mobile phone market.
“The economy of Sri Lanka is now focusing on long term development and inclusive growth, the impact of which is seen on shift in investment priorities. Whereas, previously a high proportion of population use to invest in feature phone, the preference is now shifting towards smart phones. Also, the low cost options available at entry level smart phones have led to the rise in demand. ” Says Raj Nimesh, Senior Market Analyst, Client Devices, IDC South Asia.
Top 3 Smartphone Vendor Highlights
Samsung: With approximately 30% share, Samsung leads the market in the smart phone category. Samsung continues to be one of the most preferred smart phone brands in the country. Galaxy S Duos remains to be the hero product series for Samsung.
Huawei: Huawei grabbed second position in smart phone category with close to 18% market share. The brand continues to enjoy a good reach in both top cities and upcountry markets, as their products are distributed exclusively through one of the most trusted names in the country, SINGER.
Nokia: Nokia stands third in smart phone market with close to 9% market share. Higher brand recall owing to their feature phone penetration continues to drive their business in the country. However, the brand might soon find itself competing closely with Indian vendors Micromax and Intex as they gear up to gain higher market share in the country.
IDC Forecast
The Sri Lanka market is observing an economical shift. Reductions in unemployment levels, subsiding inflation and focus on inclusive growth have further resulted in improved spending from end users.
“Factors such as higher inclination towards technology, emphasis on 4G adoption and an increasing migration from feature phones to smart phones will continue to drive overall volumes in CY 2015. With more vendors targeting the local market, we also foresee a shuffle in overall vendor ranking in CY 2015. ” Comments Kiran Kumar, Research Manager, Client Devices.
