Mobile Phones in Malaysia

Euromonitor International
August 2019
MOBILE PHONES IN MALAYSIA Passport i

LIST OF CONTENTS AND TABLES

Headlines ..................................................................................................................................... 1
Prospects ..................................................................................................................................... 1
Camera Quality the Main Competitive Tool for Players in the Age of Social Media .................. 1
Mid-range Smartphones Appeal in A Saturated Category ........................................................ 1
the Country Prepares for 5g ..................................................................................................... 1
Competitive Landscape ................................................................................................................ 1
Samsung Malaysia Electronics Maintains Its Lead in Smartphones ......................................... 1
Huawei Technologies (malaysia) Maintains Second Place in Smartphones ............................. 2
Oppo Electronics Continues To Grow Its Share of Smartphones ............................................. 2
Category Data .............................................................................................................................. 2
Table 1 Sales of Mobile Phones by Category: Volume 2014-2019 ........................... 2
Table 2 Sales of Mobile Phones by Category: Value 2014-2019 .............................. 2
Table 3 Sales of Mobile Phones by Category: % Volume Growth 2014-2019 .......... 3
Table 4 Sales of Mobile Phones by Category: % Value Growth 2014-2019 ............. 3
Table 5 Sales of Smartphones by Screen Size: % Retail Volume 2018-2019 .......... 3
Table 6 NBO Company Shares of Mobile Phones: % Volume 2015-2019 ................ 3
Table 7 LBN Brand Shares of Mobile Phones: % Volume 2016-2019 ...................... 4
Table 8 Distribution of Mobile Phones by Channel: % Volume 2014-2019 ............... 5
Table 9 Forecast Sales of Mobile Phones by Category: Volume 2019-2024 ............ 5
Table 10 Forecast Sales of Mobile Phones by Category: Value 2019-2024 ............... 5
Table 11 Forecast Sales of Mobile Phones by Category: % Volume Growth
2019-2024 .................................................................................................... 6
Table 12 Forecast Sales of Mobile Phones by Category: % Value Growth 2019-
2024 ............................................................................................................. 6
Table 13 Forecast Sales of Smartphones by Screen Size: % Retail Volume
2019-2024 .................................................................................................... 6

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MOBILE PHONES IN MALAYSIA

HEADLINES
▪ Feature phones records a 22% retail volume decline to reach 346,500 units in 2019
▪ Low-income demographics and migrant workers remain the main users of feature phones in
2019
▪ Smartphones records 1% retail volume growth to reach 8.9 million units in 2019
▪ Camera quality becomes the main battleground for smartphone manufacturers in 2019
▪ Mobile phones is expected to record a flat retail volume CAGR over the forecast period to
remain at 9.3 million units in 2024

PROSPECTS

Camera Quality the Main Competitive Tool for Players in the Age of
Social Media
In the era of social media platforms such as Instagram and Facebook with over 24 million
active Malaysian users, manufacturers are aiming to compete by facilitating the near obsession
of consumers to share/post selfies, food and holiday pictures. Online reviews of smartphones
have largely shifted their focus to comparing cameras on smartphones and the quality of
pictures they can provide. Smartphone players are likely to continue to focus on this aspect of
their products to drive sales over the forecast period, given the popularity of social media and
the maturity of the smartphone category going forward.

Mid-range Smartphones Appeal in A Saturated Category

Although the replacement cycle for smartphones is relatively short, the increasing functionality
present on most models is fulfilling the requirements of the majority of consumers, who are
becoming less willing to replace their smartphones so often. Smartphones are available in a
wide range of choices and price points. In general, mid-range smartphones with reasonable
cameras are increasingly appealing to consumers. The leader in smartphones, Samsung
Malaysia Electronics, covers all levels of demand, with products available in most price bands.

the Country Prepares for 5g

Malaysia is preparing for 5G, with major telecommunication service providers such TM,
Celcom, Maxis, Digi and U-mobile showcasing their 5G networks in Putrajaya on 18 April 2019,
placing Malaysia as one of the first countries in the Asean region to test the technology.
Malaysia is expected to begin using 5G by 2021.

COMPETITIVE LANDSCAPE

Samsung Malaysia Electronics Maintains Its Lead in Smartphones

Samsung Malaysia Electronics maintained its lead in smartphones despite losing some share
to other, less well-known brands in 2019. The company has successfully built its brand
presence in the country with a wide range of affordable smartphones. It is worth noting that
Samsung lost some share in 2018 and 2019 as its smartphones were deemed as offering less

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value for money than some of its rivals, which retailed at far more affordable prices. However, it
is expected to maintain its lead in the country with its new innovative smartphones, such as the
Samsung Galaxy Fold, the first foldable smartphone in Malaysia, which was launched in May
2019. In 2018, Samsung Malaysia also opened a new Samsung Premium Experience Store.
The store is positioned as a one-stop destination for all Samsung consumer electronic goods,
including smartphones, which will likely contribute to increasing its visibility in the country still
further.

Huawei Technologies (malaysia) Maintains Second Place in

Smartphones
Huawei Technologies (Malaysia) maintained its second place in smartphones in 2019, despite
losing share after the strong gains it achieved in 2018. The player may possibly have suffered
somewhat from its well-publicised issues with the US government. However, the company
remained highly active in Malaysia in promoting its smartphones. Roadshows and online
launches of its new smartphones on its website and availability of its products on online
platforms such as Lazada and Shopee helped maintain its strong position in smartphones. It is
estimated that Huawei Technologies (Malaysia) sold more than 6,000 units of its Nova 3i on the
first day of sales, with other launches also achieving substantial sales within hours and days of
their launch.

Oppo Electronics Continues To Grow Its Share of Smartphones

OPPO Electronics grew its share of smartphones consistently over the review period and into
2019. With endorsements from local celebrities such as Neelofa, Fattah Amin and the
Taiwanese Hebe Tian, and the presence of authorised distributors across all states, together
with affordable pricing, the company has successfully built a significant consumer base,
especially in rural areas where consumers are generally more price conscious.

CATEGORY DATA
Table 1 Sales of Mobile Phones by Category: Volume 2014-2019

'000 units
2014 2015 2016 2017 2018 2019

Feature Phones 855.3 747.5 648.1 541.2 444.1 346.5

Smartphones 7,874.4 8,622.5 8,717.4 8,802.8 8,884.6 8,964.6
Mobile Phones 8,729.7 9,370.0 9,365.5 9,343.9 9,328.7 9,311.1
Source: Euromonitor International from official statistics, trade associations, trade press, company research,
store checks, trade interviews, trade sources

Table 2 Sales of Mobile Phones by Category: Value 2014-2019

MYR million
2014 2015 2016 2017 2018 2019

Feature Phones 194.6 144.7 107.5 77.9 58.3 42.6

Smartphones 10,240.6 11,756.2 10,797.8 11,308.7 11,946.9 12,549.7
Mobile Phones 10,435.2 11,900.9 10,905.4 11,386.5 12,005.2 12,592.3
Source: Euromonitor International from official statistics, trade associations, trade press, company research,
store checks, trade interviews, trade sources

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Table 3 Sales of Mobile Phones by Category: % Volume Growth 2014-2019

% volume growth
2018/19 2014-19 CAGR 2014/19 Total

Feature Phones -22.0 -16.5 -59.5

Smartphones 0.9 2.6 13.8
Mobile Phones -0.2 1.3 6.7
Source: Euromonitor International from official statistics, trade associations, trade press, company research,
store checks, trade interviews, trade sources

Table 4 Sales of Mobile Phones by Category: % Value Growth 2014-2019

% current value growth

2018/19 2014-19 CAGR 2014/19 Total

Feature Phones -27.0 -26.2 -78.1

Smartphones 5.0 4.2 22.5
Mobile Phones 4.9 3.8 20.7
Source: Euromonitor International from official statistics, trade associations, trade press, company research,
store checks, trade interviews, trade sources

Table 5 Sales of Smartphones by Screen Size: % Retail Volume 2018-2019

% retail volume
2018 2019

<4.7 inch 21.0 18.0

4.7 inch - 5.49 inch 43.0 43.0
>= 5.5 inch 36.0 39.0
Total 100.0 100.0
Source: Euromonitor International from official statistics, trade associations, trade press, company research,
store checks, trade interviews, trade sources

Table 6 NBO Company Shares of Mobile Phones: % Volume 2015-2019

% retail volume
Company 2015 2016 2017 2018 2019

Samsung Malaysia 39.6 38.9 39.1 37.1 36.4

Electronics Sdn Bhd
Huawei Technologies 4.8 8.2 9.6 14.8 13.8
(Malaysia) Sdn Bhd
Apple Computer Systems 18.5 17.1 15.9 14.6 13.7
Malaysia Sdn Bhd
OPPO Electronics Sdn Bhd 3.5 7.1 9.7 11.5 13.2
Vivo Technologies Sdn Bhd 2.1 3.5 4.1 4.4 4.7
Xiaomi Corp 2.2 2.2 2.8 3.6 4.1
Microsoft Malaysia Sdn 3.9 3.4 3.0 2.6 2.1
Bhd
ZTE (M) Corp Sdn Bhd 1.5 1.6 1.7 1.7 1.7
AsusTek Computer 6.6 6.6 3.5 1.2 1.2

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Malaysia Sdn Bhd

Lenovo Malaysia Sdn Bhd 6.7 4.7 4.6 2.0 1.1
HTC Corp 2.8 0.9 0.7 0.7 0.5
BlackBerry Ltd 1.2 1.0 0.7 0.6 0.5
Sony Malaysia Sdn Bhd 1.9 0.9 0.8 0.7 0.2
LG Electronics (M) Sdn 0.6 0.5 0.6 0.4 0.2
Bhd
Microsoft Corp 0.5 0.2 0.2 0.2 0.2
Motorola Malaysia Sdn Bhd - - - - -
Nokia (M) Sdn Bhd - - - - -
Sony Ericsson Mobile - - - - -
Communications AB
Research In Motion - - - - -
Malaysia Sdn Bhd
Others 3.5 3.3 2.8 4.1 6.3
Total 100.0 100.0 100.0 100.0 100.0
Source: Euromonitor International from official statistics, trade associations, trade press, company research,
store checks, trade interviews, trade sources

Table 7 LBN Brand Shares of Mobile Phones: % Volume 2016-2019

% retail volume
Brand (GBO) Company (NBO) 2016 2017 2018 2019

Samsung (Samsung Samsung Malaysia 38.9 39.1 37.1 36.4

Corp) Electronics Sdn Bhd
Huawei (Huawei Huawei Technologies 8.2 9.6 14.8 13.8
Technologies Co Ltd) (Malaysia) Sdn Bhd
iPhone (Apple Inc) Apple Computer Systems 17.1 15.9 14.6 13.7
Malaysia Sdn Bhd
Oppo (Guangdong OPPO Electronics Sdn Bhd 7.1 9.7 11.5 13.2
OPPO Mobile
Telecommunications
Corp Ltd)
Vivo (Vivo Vivo Technologies Sdn Bhd 3.5 4.1 4.4 4.7
Communication
Technology Co Ltd)
Xiaomi Xiaomi Corp 2.2 2.8 3.6 4.1
Nokia (Nokia Corp) Microsoft Malaysia Sdn Bhd 3.4 3.0 2.6 2.1
ZTE (ZTE Corp) ZTE (M) Corp Sdn Bhd 1.6 1.7 1.7 1.7
Asus (AsusTek AsusTek Computer 6.6 3.5 1.2 1.2
Computer Inc) Malaysia Sdn Bhd
Lenovo (Lenovo Lenovo Malaysia Sdn Bhd 4.7 4.6 2.0 1.1
Group Ltd)
HTC HTC Corp 0.9 0.7 0.7 0.5
Blackberry BlackBerry Ltd 1.0 0.7 0.6 0.5
Sony (Sony Corp) Sony Malaysia Sdn Bhd 0.9 0.8 0.7 0.2
LG (LG Corp) LG Electronics (M) Sdn Bhd 0.5 0.6 0.4 0.2
Lumia Microsoft Corp 0.2 0.2 0.2 0.2
Motorola (Google Inc) Motorola Malaysia Sdn Bhd - - - -
Motorola (Motorola Motorola Malaysia Sdn Bhd - - - -
Inc)
Motorola (Motorola Motorola Malaysia Sdn Bhd - - - -
Mobility Inc)
Nokia (Nokia Corp) Nokia (M) Sdn Bhd - - - -
Blackberry Research In Motion - - - -
(Research in Motion Malaysia Sdn Bhd
Ltd)
Sony Ericsson Sony Ericsson Mobile - - - -

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Communications AB
Others Others 3.3 2.8 4.1 6.3
Total Total 100.0 100.0 100.0 100.0
Source: Euromonitor International from official statistics, trade associations, trade press, company research,
store checks, trade interviews, trade sources

Table 8 Distribution of Mobile Phones by Channel: % Volume 2014-2019

% retail volume
2014 2015 2016 2017 2018 2019

Store-Based Retailing 99.2 99.2 99.1 99.0 99.0 99.0

- Grocery Retailers 0.9 - - - - -
-- Discounters - - - - - -
-- Hypermarkets 0.9 - - - - -
-- Supermarkets - - - - - -
-- Other Grocery - - - - - -
Retailers
- Non-Grocery Specialists 98.3 99.2 99.1 99.0 99.0 99.0
-- Electronics and 98.3 99.2 99.1 99.0 99.0 99.0
Appliance Specialist
Retailers
-- Other Non-Grocery - - - - - -
Specialists
- Mixed Retailers - - - - - -
Non-Store Retailing 0.8 0.8 0.9 1.0 1.0 1.0
- Direct Selling - - - - - -
- Homeshopping - 0.0 0.0 0.0 0.0 0.0
- Internet Retailing 0.8 0.8 0.9 0.9 1.0 1.0
Total 100.0 100.0 100.0 100.0 100.0 100.0
Source: Euromonitor International from official statistics, trade associations, trade press, company research,
store checks, trade interviews, trade sources

Table 9 Forecast Sales of Mobile Phones by Category: Volume 2019-2024

'000 units
2019 2020 2021 2022 2023 2024

Feature Phones 346.5 265.6 203.2 155.3 118.5 90.3

Smartphones 8,964.6 9,118.5 9,174.8 9,133.8 9,165.6 9,229.0
Mobile Phones 9,311.1 9,384.2 9,378.0 9,289.1 9,284.0 9,319.2
Source: Euromonitor International from trade associations, trade press, company research, trade interviews,
trade sources

Table 10 Forecast Sales of Mobile Phones by Category: Value 2019-2024

MYR million
2019 2020 2021 2022 2023 2024

Feature Phones 42.6 29.5 20.6 14.8 10.6 7.8

Smartphones 12,549.7 13,659.9 14,096.5 14,463.4 14,958.3 15,366.5
Mobile Phones 12,592.3 13,689.4 14,117.1 14,478.2 14,968.9 15,374.2
Source: Euromonitor International from trade associations, trade press, company research, trade interviews,
trade sources

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Table 11 Forecast Sales of Mobile Phones by Category: % Volume Growth 2019-2024

% volume growth
2019/20 2019-24 CAGR 2019/24 Total

Feature Phones -23.3 -23.6 -74.0

Smartphones 1.7 0.6 2.9
Mobile Phones 0.8 0.0 0.1
Source: Euromonitor International from trade associations, trade press, company research, trade interviews,
trade sources

Table 12 Forecast Sales of Mobile Phones by Category: % Value Growth 2019-2024

% constant value growth

2019/2020 2019-24 CAGR 2019/24 Total

Feature Phones -30.6 -28.9 -81.8

Smartphones 8.8 4.1 22.4
Mobile Phones 8.7 4.1 22.1
Source: Euromonitor International from trade associations, trade press, company research, trade interviews,
trade sources

Table 13 Forecast Sales of Smartphones by Screen Size: % Retail Volume 2019-2024

% retail volume
2019 2020 2021 2022 2023 2024

<4.7 inch 18.0 16.0 14.0 13.0 12.0 12.0

4.7 inch - 5.49 inch 43.0 42.0 40.0 39.0 38.6 38.5
>= 5.5 inch 39.0 42.0 46.0 48.0 49.4 49.5
Total 100.0 100.0 100.0 100.0 100.0 100.0
Source: Euromonitor International from trade associations, trade press, company research, trade interviews,
trade sources

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