The PH Midrange Smartphone Market is 100% Lit and Will Just Keep Getting Better

The PH Midrange Smartphone Market is 100% Lit and Will Just Keep Getting Better

Let’s face the brutal truth. Smartphone manufacturers are moving up and pricing their flagships out of the reach of ordinary Filipinos. Php30,000 was already a stretch a few years ago but now we’re seeing devices at the Php50,000 and up range. The only realistic way to get those devices is through postpaid plans or you’re just plain loaded with cash and can afford them. Not a lot of Pinoys are either.

The real action is not at the flagship level because the battle for smartphone market dominance has now shifted from the entry level smartphones (below Php10,000) to the midrange segment (Php10,000-Php15,000). This is where manufacturers get a healthy balance of volume and value. When it comes to the sub Php5,000 entry level, their margins are so low that they probably treat that category as loss leaders.

The fierce competition in this lucrative segment has forced manufacturers to level up their game on price, specifications, and marketing.

Pricing: Accessible but High Interest Financing

The newly released Vivo V7

One of the biggest breakthroughs that we saw in the market was the partnership of Chinese brands with financing companies like Home Credit. In any mall that you go to chances are you will bump into aggressive salesmen with banners that you can finance your purchase and pay for it over 12 months. This definitely makes the devices more accessible BUT take note that you’re actually paying more for it over the long run.

You can read more about this in our article: Cash, Credit, or Third Party Financing Smartphone Purchases.

If you can get it at 0% interest via credit cards, that would be best. You’re actually paying a lot if you course it through financing companies like Home Credit.

Flagship Features at a Midrange Price

OPPO F5 with AI Beauty Mode. Studio lights.

One big trend that we saw this year was how mid-range phones started to get flagship features (though toned down).

First we have the “bokeh” camera effect where the background is blurred. It’s produces a dramatic effect which makes people feel that they’re taking better pictures. Leading this pack is the Huawei Nova 2i who has been touting their 4-camera set-up.

We also have the overemphasis of the selfie camera. OPPO and Vivo are the primary contenders here. OPPO is leveraging heavily on their branding and AI-driven beautification while Vivo is betting on sheer mega-pixel count for clearer selfies.

There’s also ASUS. They released a full line-up of Zenfone 4 smartphones a few months back including my personal favorite, the ASUS Zenfone 4 Max which has a monstrous battery pack.

See Our Reviews: OPPO F5 Review, Huawei Nova 2i Review, Vivo V7 Review, ASUS Zenfone 4 Max Review

The Samsung J7+

Of course you can’t count out Samsung. Their J7 series is one of the best-selling smartphones this year in this segment. Each offering has a specific focus from gaming to low light photography.

See Our Reviews: Samsung Galaxy J7 Core Review, Samsung Galaxy J7 Pro Review, Samsung Galaxy J7+ Review

Fierce Battle of Endorsers but they Need Better Positioning

Last, but not the least, is how the various manufacturers are marketing their products and services. We give OPPO and Samsung top honors for this one. It’s not because that they have celebrity endorsers (because everyone has them), but it’s how they were able to clearly differentiate from competition by positioning their products a certain way and staying consistent with their communication materials over time.

New Mid-Range Smartphone Face off: OPPO F5 vs. Vivo V7+

OPPO has rallied around the “Selfie Expert” brand for the longest time and they’re reaping the rewards for it. When people hear OPPO, they no longer think that it’s a “China brand”. They just know that they’re all about selfies and that they have Sarah Geronimo and Alden Richards.

Samsung, on the other hand, has consistently delivered solid value propositions across their portfolio. From “Capture the Night” featuring Liza Soberano to their gaming smartphone the J7 Core with Alodia, they’ve always been on point with their combination of endorsers and messaging.

It Will Keep Getting Better

The Huawei Nova 2i

One thing is for sure — we will continue to see flagship features and specs trickle down to the mid-range sooner than we expect. It really makes so much sense to just go for a mid-range these days especially with how fast companies launch new generations yearly.

It will just keep getting better thanks to competition and we look forward to more bang-for-buck smartphones from ASUS, Vivo, OPPO, Huawei, Samsung, Xiaomi, and even the local brands like Cherry Mobile, Cloudfone, MyPhone, and Starmobile, in the coming months ahead.

Let us know what you guys think about this in the comments section below!

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