|The gioi di dong, another giant retailer that owns 350 retail outlets, also uses the same strategy for its smartphones by cutting prices of Samsung Galaxy Note 4 by VND2.5 – 3.5 million ($115 – 161) and Samsung Galaxy Grand Prime G530 by VND800,000 ($36.8). — File Photo
HA NOI (VNS)— The mobile phone market, especially the smartphone market, will continue to witness the discounting of products as manufacturers race to introduce new products and retailers race to gain market share.
Before the two latest smart phones were brought out by South Korea's Samsung Corporation-the Galaxy S6 and Galaxy S6 Edge – which was available for sale in Viet Nam beginning April 11, FPT Shop retail system had adjusted prices for many products by decreasing their price by between VND1.1 million (US$50.6) and VND2.7 million ($124.2).
For example, Oppo Find R1 was reduced by VND1.1 million ($50.6) to VND6.99 million ($321.5), Gionee Elife reduced by VND2.7 million ($124.2) to VND4.29 million ($197.3) and Philips Xenium I928 reduced by VND1.5 million ($69) to VND6.49 million ($298.5).
Nguyen The Kha, deputy director of F.Studio by FPT, said fierce competition among retailers drove F.Studio by FPT to develop a promotional programme for customers purchasing iPhone 5s on installment plans. Customers now pay VND5.6 million ($257.6) in advance and pay the remainder at zero per cent interest rate for six months.
The gioi di dong, another giant retailer that owns 350 retail outlets, also uses the same strategy for its smartphones by cutting prices of Samsung Galaxy Note 4 by VND2.5 – 3.5 million ($115 – 161) and Samsung Galaxy Grand Prime G530 by VND800,000 ($36.8).
Vo Le Tam Thanh, market analyst for client device research at IDC Viet Nam, said rapid price reductions have resulted in the quickening penetration of smartphones in Viet Nam.
An IDC survey showed that 28.7 million mobile phones were shipped to Viet Nam last year, 13 per cent more than in 2013.
Smartphones enjoyed the highest growth, as shipments reached 11.6 million units, a year-on-year growth of 57 per cent, and are expected to eclipse feature phones this year.
According to an analysis of IDC Viet Nam, even though low-price smartphones are the main driving force for growth, consumption of high-end smartphones contributed remarkably to the turnover.
For example, 200 FPT Shop stores nationwide sold 800 Samsung Galaxy S6 and S6 Edge smartphones on the day the phones went on sale.
The Samsung Galaxy S6 and S6 Edge are sold for VND16.59 million (US$790) and VND19.99 million ($951.9), as the two latest smartphones brought in some VND15 billion ($690,000) for FPT Shop in only one day.
Such figures have revealed the high demand among domestic consumers for new smartphones.
Contributing to the high consumption of the two new smartphones were the attractive promotions offered by FPT Shop.
Further, the shop offered Gear Circle some VND2.5 million ($115) for the first 100 customers buying Samsung Galaxy S6 and S6 Edge smartphones in Ha Noi.
The continuous release of new smartphones has resulted in increasingly harsh competitiveness in the smartphone market, which put pressure on retailers to sell old models, while promoting and selling new models at the same time.
Therefore, IDC Viet Nam forecast that there would be additional discounting programmes in the future. — VNS