Xiaomi Tops Bangladesh Smartphone Market for First Time Ever in Q2 2022
Bangladesh’s smartphone market shipments declined 3% YoY in Q2 2022, according to the latest research from Counterpoint’s Market Monitor Service. The market declined due to soaring inflation and rising commodity prices, which resulted in a weakened consumer purchasing power for electronics. However, Bangladesh performed well as one of the most stable economies in South Asia.
Commenting on the brands in the market, Senior Analyst Karn Chauhan said, “In Q2 2022, Xiaomi captured the top spot for the first time in Bangladesh’s smartphone market with a share of 28.8% and 134% YoY growth. Xiaomi’s growing offline presence, well-developed local manufacturing facility and a wide entry-level portfolio with features like larger display size, huge battery capacity and improved camera helped it to reach the top spot. Eid festivities also helped Xiaomi drive significant volumes. Going forward, the brand will continue to focus on offline expansion and adding more features to the entry-level segment.”
“Samsung’s newly added budget smartphones and their steady performance in the entry- and mid-price levels took the brand to the second spot with a 17.3% market share and 65% YoY growth. Samsung’s active promotions and marketing helped it remain in the top three despite falling from its first position in Q1 2022. vivo took third place with a 10.1% share driven by its strong omni-channel presence and ability to target a range of entry- and mid-level price bands,” he added.
Commenting on the market dynamics, Chauhan said, “Bangladesh’s smartphone market experienced a good start with Eid celebrations during April. The month contributed almost half of the quarter’s total shipment volumes. However, the volumes declined adversely in May and June due to smartphone costs rising by up to 10% on increasing component prices and the addition of VAT. OEMs are expected to increase smartphone prices by up to another 20% in the coming months.”
Bangladesh’s feature phone shipments declined 12% YoY, mainly due to the shift towards smartphones, which resulted in a 9% YoY decline in the country’s overall mobile handset market in Q2 2022. Symphony continued to be at the top position in Bangladesh’s feature phone market in Q2 2022, capturing a 17% share followed by itel and Nokia HMD.
Smartphone shipment penetration increased in Q2 2022 to nearly 48% of the overall handset market, up from 45% in Q2 2021.
More than 80% of the smartphones shipped in Bangladesh have been manufactured locally since 2020. Bangladesh’s smartphone market is now a mature market in terms of local manufacturing. It has the capacity to produce more than 2 million smartphones per month. Locally-made smartphones’ penetration is expected to cross 95% by next year.
5G smartphone shipments grew 20% YoY in Q2 2022 to take their share to 13% of total shipments, up from 6% in Q2 2021. Nearly 80% of all 5G smartphones shipped in Q2 2022 came from the top five brands.
Top 10 smartphone models captured 44% of the smartphone market in Q2 2022. Xiaomi took four spots on the list. Its Redmi Note 11 was the best-selling smartphone in Q2 2022, followed by Samsung’s Galaxy A13.
During the start of Eid sales in April, Xiaomi offered attractive installment schemes to smartphone buyers at zero cost of interest. For the Eid sales in June, Samsung provided up to 50% cashback on its complete mobile phone portfolio, as well as exchange option and no-cost EMI for up to 24 months. Brands like OPPO and vivo targeted the online audience during the festive season by launching various campaigns on leading e-commerce websites like Daraz and Pickaboo.
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.
Press Release from Counterpoint
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