SINGAPORE – Rising prices are unlikely to stop Singaporeans from getting their hands on a premium new mobile phone, analysts say.
Demand is projected to climb steadily for expensive phones above $1,000, such as the flagship devices of Apple, Samsung, Google and Oppo, as buyers are drawn to instalment plans and heavier advertising by the brands.
Market research firm IDC’s vice-president of devices research Bryan Ma said that smartphone shipments to Singapore are expected to pick up by 1.2 per cent to 2.33 million units in 2024, from an estimated 2.3 million units shipped by the end of 2023. The market dipped 5.2 per cent in 2023 compared with 2022, said Mr Ma.
The growing availability of buy-now-pay-later schemes on e-commerce platforms and telco instalment plans make it easier for buyers to stomach pricier devices as they need not pay the full price upfront.
Telcos, in particular, are key promotional vehicles for phone manufacturers, as nearly a third of buyers here pick up their phones from telcos, said Mr Ma.
Such projections come on the back of rising prices in 2023.
Prices of the Google Pixel 8 and 8 Pro jumped by more than $100 compared with their predecessors.
The $1,099 Pixel 8 is $100 more than the Pixel 7, while the Pixel 8 Pro is $1,549, up from its predecessor’s $1,299 price tag.
The price of entry for the iPhone 15 Pro Max – at $1,999 for the 256GB model – is also higher than before as Apple no longer offers a 128GB version, which was $1,799 at launch for the iPhone 14 Pro Max.
Mr Ma added that the average price of a smartphone sold here is nearly twice the global average of US$438 (S$590), reflecting how the Singapore market leans towards higher-end products.
Market research company Canalys said incoming shipments of phones above $1,000 have risen over the past four years to account for 56 per cent of shipments in 2023, compared with a third of shipments in 2020.
It also found that the top five phones sold here in 2023 were all premium devices, including the iPhone 14 Pro Max and the Samsung S23 Ultra.
Canalys analyst Chiew Le Xuan said that brands like Oppo and Google rose in prominence in 2023 to compete with mainstays Apple and Samsung, thanks to innovations in the foldables market and aggressive advertising.
Apple sat at the top of the chain with 43 per cent of the market share as at the third quarter of 2023, Canalys found, followed by Samsung (32 per cent) and Oppo (11 per cent).
Mr Chiew said sales of Oppo devices here have grown by an estimated 7 per cent so far in 2023, compared with 2022.
Innovations in phones with folding screens in the Android market have also captivated buyers.
IDC’s research found that roughly 4.1 per cent of smartphones shipped here in the first three quarters of 2023 were foldable phones, compared with 2.9 per cent in the entire 2021. Apple has yet to join the foldables race.
Mr Chiew said Chinese manufacturer Oppo’s entry into the Singapore foldables market with the Oppo Find N2 Flip in 2023 also generated competition in the foldables space, as it offered users a lower-priced flip phone to dilute Samsung’s dominance.
He added that Singapore’s market is not just made out of local consumers – it also draws buyers from the region as premium phones sold here are generally lower-priced due to supply policies in other countries, among other reasons.
Mr Jerome Lee, a university undergraduate who is considering his next phone purchase, said he is likely to opt for an instalment scheme under a telco or online payment platforms like Atome. He bought his current iPhone 12 Pro because the telco offered a discount.
The 26-year-old said: “Instalments will help me to split the payments over months, so that I can buy other things as well.”
