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ASEAN Demographic and Mobile Smart Phone Market

Analysis
Indonesia, Malaysia, Philippines, Thailand and Vietnam

Presented by: Yuric Hannart


Private and Confidential

ASEAN REGIONAL OVERVIEW


Population by number: 604.8 million
Estimated GDP of ASEAN 2012 : USD 2.4 trillion, 9th largest economy
194 million new internet users will come online between 2011 and 2020.
91 million alone in Indonesia.
By 2020, those under 30 will make up 48% of the South East Asia
population
5 Most popular activities on smart phones
1.Text messaging 2.Accessing the Internet (50% raising to 62%) 3.
Reading email 4.playing games and 5. Chat
Smartphone sales up 78% in Southeast Asia, account for just 25% of
total
Singapore, Malaysia, Thailand, Indonesia, Vietnam, Cambodia and the
Philippines which together, between July 2011 and June 2012, sold a
cumulative $13.7 billion worth of phones (118 million devices sold)

Country At Large: Indonesia

Country At Large: Indonesia (cont.)


Population by number: 250 million people (July 2012 est.)

Top five cities by population:


- Jakarta: 9.1 million
- Surabaya: 2.5 million
- Bandung: 2.4 million
- Medan: 2.1 million
- Bekasi : 1.2

Demographic information:
Average age:
Total population: 28.2 years
Male: 27.7 years
Female: 28.7 years (2011 est.)
GDP(2012) : $880 billion USD (GDP growth 6.2% ), per capita $US 3,420
Indonesia is in fact the fourth largest country on earth (behind just China, India,
and the US)

Country At Large: Indonesia (cont.)


Total number of mobile subscriptions / subscribers: 220 million

(Telkomsel, Indosat and XL accounted for 85% of the market)


Percentage of mobile penetration: 92%
Number / percentage of smart phones v/s feature phones : 20%
Total number of Internet users : 55 million
Percentage of Internet penetration : 23%
Percentage of mobile Internet users : 29%
Most of the apps are :
Games
Facebook is the fourth largest market
Twitter counts Jakarta as its number one city (55% are retweeted)

Growth is driven by affordable smart phones in the range of $100 200


Over 60 million mobile phones will be purchased in Indonesia in 2013.

Country At Large: Indonesia (cont.)


From Q4 2011 to Q1 2012

Country At Large: Malaysia

Country At Large: Malaysia (cont.)


Population by number: 29.2 million

Top five cities by population:


- Kuala Lumpur: 1.6 million
- Ipoh: 441,628
- Johor Bahru: 441,628
- Kuantan: 356,153
- Seremban: 317,813

Demographic information:
Average age:
Total population: 26.8 years
Male: 26.7 years
Female: 27 years (2011 est.)
GDP(2012) : $304 billion USD (GDP growth 5.6% ), per capita $US 9,800
Sales of smart phones in the region rose 78 percent year-on-year in ASEAN region,
according to new figures from GfK

Country At Large: Malaysia (cont.)


Total number of mobile subscriptions / subscribers: 35.7 million

(Maxis 14 million, Celcom 12 million and DiGi 10 million)


Percentage of mobile penetration: 124%
Number / percentage of smart phones v/s feature phones : 27%
Total number of Internet users : 17.5 million
Percentage of Internet penetration : 61.7%
Number of mobile Internet users : 10 million
Most of the apps are
Application software : 41.8%
Ringtones: 33.8%
Games: 32.8%
Malaysia Communication and Multimedia Corporation (MCMC) is proposing
a rebate MYR200 ($65 US) rebate on selected 3G smart phones that cost no
more than MYR500 ($163US).
A Frost & Sullivan report last July stated that mobile social networking will
cause smartphone sales to "skyrocket" in ASEAN, accounting for 54 percent of
all devices sold in the region by 2015.

Country At Large: Malaysia (cont.)


From Q4 2011 to Q1 2012

Country At Large: Philippines

Country At Large: Philippines (cont.)


Population by number: 103 million

Top five cities by population:


- Quezon City: 2.7 million
- Manila: 1.6 million
- Caloocan: 1.4 million
- Davao City: 1.3 million
- Cebu City: 800,000

Demographic information:
Average age:
Total population: 22.9 years
Male: 22.4 years
Female: 23.4 years (2011 est.)
GDP(2012) :$250 billion USD (GDP growth 6.5% ), per capita $2,470
Smartphone penetration in the country at the end of March 2012 was pegged
at 29 percent, less than half the penetration rate in Indonesia.

Country At Large: Philippines (cont.)


Total number of mobile subscriptions / subscribers: 90 million

(Philippines Long Distance Telephone Company (PLDT) 66.1 million; Globe


Telecom 31 million)

Percentage of mobile penetration: 99%


Number / percentage of smart phones v/s feature phones : 20/80
Total number of Internet users : 30 million
Percentage of Internet penetration : 30%
Percentage of mobile Internet users : 20%
Most popular apps aside from Facebook and Twitter:
Simsimi; Instagram; Tumblr; DrawSomething; Temple Run; and Skype
The average price of smart phones in Philippines has dropped 23 percent
from last years US$317 to US$244
Smartphone sales grew the most in the Philippines (up 326 percent year-onyear) as the countrys share of Southeast Asias total sales rose to 24 percent,
from 9 percent in 2011.

Country At Large: Philippines (cont.)


From Q4 2011 to Q1 2012

Country At Large: Thailand

Country At Large: Thailand (cont.)


Population by number: 67 million (July 2012 est.)

Top five cities by population:


- Bangkok: 5.7 million
- Nakhon Ratchasima: 2.5 million
- Ubon Ratchathani: 1.8 million
- Khon Kaen: 1.7 million
- Chiang Mai: 1.6 million

Demographic information:
Average age:
Total population: 34.2 years
Male: 33.3 years
Female: 35.2 years (2011 est.)
GDP(2012) :$366 billion USD (GDP growth 6.4% ), per capita $5,210
60% of Thais would be happy to do all their Internet surfing on a mobile
device.

Country At Large: Thailand (cont.)


Total number of mobile subscriptions / subscribers: 77 million

(Advanced Info Service AIS 37.1 million; DTAC (Telenor) 26.6 million ; and True Move
21.5 million)

Percentage of mobile penetration: 115%


Number / percentage of smart phones v/s feature phones : 25%
Total number of Internet users : 25 million
Percentage of Internet penetration : 37.3%
Number of mobile Internet users : 1 million
758,000 smart phones sold in the first three months of 2012.
Smart phones in the range of USD 150 - 250 are the most saleable with over
one in two smart phones coming from this segment, the pricier models above
USD500 have maintained their market share of 18 percent in the latest
quarter, translating to an overall contribution of almost 40 percent in the
countrys smart phone sales.
Smart phone sales in Thailand gather pace with over 2.87 million sold in the
first four months of 2013

Country At Large: Thailand (cont.)


From Q4 2011 to Q1 2012

Country At Large: Vietnam

Country At Large: Vietnam (cont.)


Population by number: 91 million (July 2012 est.)

Top five cities by population:


- Ho Chi Minh City: 7.1 million
- Ha Noi : 6.5 million
- Thanh Hoa Province: 3.4 million
- Ngh An Province: 2.9 million
- ng Nai Province: 2.5 million

Demographic information:
Average age:
Total population: 27.8 years.
Males: 26.8 years.
Females: 28.9 years.(2011 est)
GDP(2012) :$142 billion USD (GDP growth 5.0% ), per capita $1,410
77 percent of consumers expect to conduct mobile commerce in the next 12
months a 36 percent increase from today.

Country At Large: Vietnam (cont.)


Total number of mobile subscriptions / subscribers: 180 million Sim card

sold, with over 60 million active.


(Vietel 43.7 million or 36.1% ; Mobifone 34.7 million or 28.7% ; and Vinaphone)

Percentage of mobile penetration: 174%


Number / percentage of smart phones v/s feature phones : < 10%
Total number of Internet users : 30 million
Percentage of Internet penetration : 30%
Number of mobile Internet users : estimated to be more than 500,000
While all phone market just increase slowly around 2.4% and fixture phone
down 12.54%, smart phone still gets high growth YoY with 41%
3Q2012/3Q2011
Vietnam mobile users ready to pay $186 on average for their next phone

55 percent of Vietnamese would be happy to do all their Internet surfing


using a mobile device.

Country At Large: Vietnam (cont.)


From Q4 2011 to Q1 2012

Opportunities and Challenges


Opportunities:

Youthful population is more open to new technology


Smart phone provides Internet connection much cheaper than
fixed line
Economic growth requires more connection and access to the
Internet
Smart phone penetration is still only 25% or less for the region

Challenges:

Diverse cultures require different marketing approaches


Multiple carriers with different standards of GSM
Content must be localized
Product must be supported locally

How Can I help?


Yurics Background:
Over 15 years of experience in technology beginning with
Bank of America and rode the wave of Silicon Valley
technological revolution. Highlights of some of the firsts :
A.
B.
C.
D.
E.

Principal product manager for Intuit QuickBooks payroll product. The


group was less than 100 people.
Implement Fair Usage Policy and DSL for Netcom for dial up users
Launch the first hand held Internet device with Palm (Palm VII). Signed
deal with NTT Docomo and launched the first Internet phone in Japan.
Founded the first SMB solution for communication and collaboration with
built in backup, automatic update and perimeter defense
Launched the first prepaid payment solution in Vietnam

Entrepreneurial, strategic thinker, product launches, go-tomarket, software development, business development, and
marketing.
You can Google me or click on the link for more information
http://www.linkedin.com/profile/view?id=113508&trk=nav_responsive_tab_profile

Demand for Smart Phone


(Survey was asked in late 2011)

Companies are moving in to this market (2012)


Nokia launched the colorful, inexpensive Lumia 620 in Thailand
The handset will be available for 8250 Baht ($275). Unveiled last year, the Lumia
620 runs Windows Phone 8 and sports a dual-core chip.

1 GHz dual-core Snapdragon processor


3.8 inch LCD display (800 x 480) with ClearBlack technology
8GB internal memory expandable with microSD
512 MB of RAM
5 megapixel camera
1300 mAh Battery