According to market research firm IDC, Filipinos are now buying more expensive smartphones.
The average selling price of smartphones in the country last year is around ₱7,000.00. Now, it increased to around ₱10,000.00! Smartphones in this price range are categorized as mid-range.
Smartphones with Better Features
Smartphone usage has become heavier. Filipinos have been accustomed to using their smartphones in accessing the internet, taking pictures, watching videos and playing resource-intensive games.
Polyne Gallevo, a market analyst from IDC Philippines says, “the higher average selling price indicates that end users are willing to invest in a phone with better specifications and features to suit their latest needs”.
Budget smartphones with laggy performance have fallen out of favor. Filipinos are now more willing to spend more for a better smartphone.
The Rise of Financing Companies
Another reason why Filipinos are now buying more expensive smartphones is the rise of financing companies. Two well-known examples are Home Credit and Flexi Finance.
These companies offer installment plans for smartphones without a telco contract. All they need is a valid ID card and a proof of income such as a company payslip.
“Filipinos remain to be price conscious and want to ensure they get the best value of their money,” Gallevo adds.