Shift to smartphones slows laptop sales in Southeast Asia

MANILA, Philippines - Consumers are now shifting to mobile devices, particularly smartphones, as sales of laptops in Southeast Asia including the Philippines reached 4.9 million in the first nine months of 2014.

World-renowned research firm GfK reported that sales of mobile computers managed to hit nearly five milllion units in Southeast Asia from January to September last year in spite of recent technological advancements in mobile devices and consumer trends shifting towards the latest portable products.

Across the region’s tracked markets of Singapore, Malaysia, Thailand, Indonesia, Philippines and Vietnam, Indonesia is the largest market contributing 35 percent of overall laptop sales volume and a lower proportion of 28 percent in sales value.

Malaysia trails as the second biggest market, accounting for 21 and 22 percent, respectively of the region’s total volume and value sales.

 “The growing focus towards convenience and portability in recent years has shifted consumer preference towards buying mobile devices like smartphones and tablets; inevitably impacting the demand of the overall laptop market,” said Gerard Tan, account director for digital world at GfK Asia.

Tan pointed out that Thailand’s lackluster sales could be due to the political unrest earlier in 2014 that had some bearing on the sector’s performance in the region.

For the Philippines alone, GfK data showed sales of laptops fell 19 percent to 354,000 in the first nine months of 2014 from 438,000 in the same period in 2013. Sales value plunged 21 percent to $196.97 million from $247.77 million.

Although trending down in general, latest GfK retail findings revealed that laptops with larger screen sizes have been gaining ground.

While all other sizes exhibited lesser performance when compared to 2013, Tan explained that the 15 and 17 and above sized segments exhibited strong growth of 61 and 49 percent in takeup rate, respectively.

Total market share of the slightly smaller 15-inch category expanded eight percent to now occupy 18 percent of the region’s overall sales - making up nearly one in every five laptops sold.

 “With the portability criteria already fulfilled by smartphones and tablets, it makes sense for consumers who are still seeking smart-connected devices to acquire a device with larger screen,” he said.

 “Besides, consumers are increasingly using computers for consumption of digital content these days and bigger screens make for better viewing experiences.”

Malaysia and Vietnam reported the highest rise in demand for 15-inch screen laptops, garnering additional sales in this particular segment of around 142,000 and 96,000 units compared to the previous year.

 “Falling prices is one of the key attributing factors aiding the strong growth of the 15-inch laptop segment, as the gap between 14 and 15-inch models have significantly narrowed in the past one year,” he added.

In Malaysia for instance, Tan said consumers snapped up more 15-inch laptops when average price fell 16 percent compared to last year, reducing the price difference from that of smaller sized models.

 “Consumers have been delaying their purchase of mobile computers as they put their dollars in other newer and innovative mobile devices,” added Tan. “However, as their laptop goes through the usual cycle and is due for an upgrade, we can expect some form of recovery in time to come,” he said.