Analysis of mobile, smartphone and tablet market in Vietnam 2012

1. Smartphone-Tablet
By Dunglt.
Year: 2012
Note: keep confidential

2. Menu
 Global Smartphone& Tablet (S&T) trends.
 Vietnam S&T market.
 Opportunities.
 Challenges.

3. Global S&T Trends
 Internet users& subscribers
 Hardware.
 Software & Apps.
 Social& Sharing.

4. Internet Users& subscribers
 How internet users and subscribers lead smartphones and tablet???
 Source of data: US Census Bureau March 2012; ITU Nov 2011, IDC 2012; Cisco Visual Network index, Mar 2012
Percentage of World Population
Tv Subscription
Newspaper circulation
Fixed broadband subscriptions
Smartphone and tablet in use
Telephone Lines
Mobile Broadband Subscriptions
Total PCs
Internet Users
Mobile Subscriptions
World Population
Fixed
Mobile Smartphon
Mobile broadban Tv
World Internet Broadband Telephone e and Newspaper
Subscriptio Total PCs d Subscriptio
Population Users Subscriptio Lines tablet in circulation
ns subscriptio n
ns use
ns
Y2010 99% 74% 29% 22% 0 14% 6% 8% 7% 7%
Y2011 100% 85% 35% 23% 17% 17% 11% 8% 7% 7%

5. Internet Users
5 Countries =
46% of
Internet Users
–
China, USA, R
ussia, Brazil, In
dia
Note: *Penetration is per 100 inhabitants.
Source: 1) Internet user stats per International Telecommunications Union; 2) time spent data
per comScore global 12/09

6. Subscribers
Mobility will be a key innovation accelerator in emerging markets; Internet and 3G users and
subscribers in select emerging markets.
Source: Internet stats- ITU 2012; 36 stats- Informa WCIS+, Morgan Stanley; Revenue estimate for 2012, Think entertainment 2011

7. Internet Users& Subscribers
(2020 Forecast)
Internet user Worldwide (Billion)
Sources: "Online
Product Research,"
Y2020 5 Pew Research
Center, 9/2010, Goo
gle Shopper
Y2011 2 Sciences, Zero
Moment of Truth
Study, 4/2011
Mobile subscribers (Billion)
Y2020 10
Y2011 5
Digital information in the World-
videos, photos, musics, texts, etc.(BBillion
)
Y2020 53,000
Y2011 800

8. Software& Apps
 How software and Apps affect to
Smartphone and tablet???

9. Software& Apps
Apps are important to smartphone purchases
Very Important Somewhat Important neutral Somewhat Unimportant Very Unimportant
Total smartphone 38% 40% 16% 4% 2%
Android OS 36% 40% 18% 4% 3%
Apple iPhone OS 44% 38% 13% 4% 2%
Blackberry 32% 45% 17% 4% 2%
Source: Ac Nielsen

10. Software& Apps

11. Software& Apps
Source: Apple

12. Software& Apps
Mobile App Downloads
iOs Android
18
10
5
1
Y2010 Y2011
Source: Think-mobile Google

13. Software& Apps
 Mobile Platform Installed Base vs App dowloads
per Day
18 1,200
17
16
1,000 1,000 1,000
14
12 800
11
10
600
8
6 400
5
4 4
200
2 2
100 100 80 80
1
0 0
Symbian Other (Java/ Window Mobile Blackberry Android iPhone
Brew)
Installed Base (MM) App Downloads per Day (MM)

14. Software& Apps
Zynga Proves that Great New Social Products for „Old‟
Users Can Ramp Extremely Quickly

15. Software& Apps
Average Time Spent on Various Mobile
Functions, 1/11
Web/Web Apps Telephony Mail App All Other
10
Minute % Note 12%
40
Web/Web 48%
Apps 10 12% 27
32%
Telephon
y 27 32% Phone, Skype, Messages
Mail App 7 9% 7
8%
Maps, Games, Social
All Other 40 47% Networking...
60% of Time Spent on Smartphones is New Activity for Mobile Users

16. Social& Sharing
 How social, communication and sharing
drive Smartphone and tablet???

17. Social, Searching& Sharing

18. Social, Searching&
Sharing

19. Social, Searching& Sharing
Real-Time Social Features Accelerating Mobile Usage Growth - Sharing + Location +
Friending...

20. Social, Searching& Sharing
Different Types of Platforms = Emerging Types of Social
Facebook + Apple + Google Networks...More to Come

21. Social, Searching& Sharing
Google and Facebook lead in mobile reach on both Android and
Apple iOS

22. Social, Searching& Sharing

23. Social, Searching& Sharing

24. Hardware
 Driven by many factors, so how smartphone
and tablet grow in worldwide???

25. Hardware
iPods Changed the Media Industry...iPhones Ramped Even Faster...iPad Growth
Leaves its “Siblings” in the Dust.
Source: Apple

26. Hardware
Source: Gartner

27. Hardware

28. Hardware
Source: hannemyr.com/essay/diff.html 2000, macworld.com, 2010

29. Hardware
Note: Notebook PCs include Netbooks. Source: Katy Huberty, Ehud
Gelblum, Morgan Stanley Research. Data and Estimates as of 2/11

30. Hardware

31. Hardware

32. Summaries
1. Internet user& subscribers: 2. Soft& Apps:
+ 6 billion subscribers Y2011, equivalent + Y2011,18 billion apps download in iOs
to 87 percent of the world population. compare with 5 billion Y2010, and
+ Growth 10% from 5.4 billion Y2010 Android 10 billion compare with 1
and leading by developing countries billion Y2010.
as APAC and China, India. + Apps contribute nearly 80% to
+ 2 billion are on internet Y2011. decision of smartphone purchase.
+ Y2020, internet user will be increased +2
2.5 times and 2 times with subscribers. + 60% of Time Spent on Smartphones is
New Activity for Mobile Users

33. Summaries
4. Hardwares:
3. Social: + Android reach 300M, iPhone 183M and
+ Social, sharing, searching is the iPad 55M units sold out until Y2011 from
trends that drive future of Smartphone launch.
and tablet with + Apple, just after 28 days to get 1M units
Facebook, Twitter, Youtube, Google… sold out while iPod 360+ and iPhone 74
+ in USA people spend too much time days.
for Facebook, Google, even 57% to + iPhone, tablet get 50M users within 2
talk people online than real life. years equivalent to TV 12 years and Radio
+ Facebook and Google are 2 big nearly 40 years.
player in iOs and Android base with + Forecast: 2012 tablet will account 25%
662M and 972M users of PC shipments and Mobile over pass PC

34. Vietnam S&T Trends
 Internet users& subscribers.
 Software & Apps.
 Social& Sharing.
 Hardware.

35. Internet user and subscribers

36. Internet user and subscribers
1. The internet users
and mobile
subscribers
penetration of
Vietnam is rated
highly comparing
with others in
Southeast Asia:
Mobile is the No1
with 174% and
Internet No3 lower
than Singapore
and Thailand over
30%.
2. Vietnam shows
that tech
background is
ready for hardware
and related
applications. And
actually this means
that costs for them
are cheap even
free.

37. Internet user and subscribers
Opportunities:
1. Rising income and cheaper phones and IT
devices are making telco services more
affordable.
2. Mobile internet (3G), broadband and VAS
Threats:
provided through high speed Internet
Saturated mobile market, with a
access.(Slide 6 to see 707% growth 3G Vn)
penetration rate of 174.4% in 2010 -
3. Semi-rural and rural markets, which remain
subscriber growth to slow to 6.1% p.a.
relatively untapped and account for 70% of
over the next five years (2011-2015).
the country‟s population.
4. Collaborations between telco operators, telco
and IT device suppliers, content
developers, content aggregators and users
can provide new sources for VAS.

38. ICT Vietnam Target

39. Software& Apps
Regular Apps download is one of
the highest rates in SEA only
behind Singapore, but people
not ready pay for download
Source: AC Nielsen

40. Social, Searching& Sharing
 How social, communication and sharing
group work???

41. Social, Searching& Sharing
Although Vietnam has shown the highest growth in reach of 35% from 2009 to 2010, the
penetration rate of social network remains low at just 66%. This has also led to a 73%
increased in the number of Vietnamese sharing photos on social networking sites in the
same years as they began to embrace the sharing of photos with friends as part of the
social networking experience

42. Social, Searching& Sharing
1. Blog sites have a 57% reach in
Vietnam, pretty much be the same reach
as in 2009 (56%) (source: Comscore).
2. Community sites have a 72% reach in the
country now (source: Comscore).
3. Vietnam is now home to more than 4
million bloggers, despite them living in one
of the “10 worst countries to be a
blogger”. (Source: movements.org/RSF).

43. Social, Searching& Sharing
1. Facebook is inaccessible in Vietnam around 70% of 3. Local social networks Zingme and Yome have been
the time (Source: movements.org/RSF). more successful at attracting users, with Zingme
2. Despite the unavailability of Facebook in Vietnam currently having around 5.6 million unique users on its
and despite the fact that the government blocked it books, Yume with 2.9 million.
more than a year ago- it has still managed to gamer 4. Another study contradicts these findings regarding
around 1.4 million users, 40.7% more than in 2009 which is the biggest social network in Vietnam; it
places Facebook firmly at the top as the most visited
social networking site in the country with 67% of
internet users checking it out, compared to only 19%
of users going to Zingme.

44. Hardwares
If Vietnam will stand in the trend of global
Smartphone and tablet???

45. Hardwares
Mobile stands out as the most owned and most sort after device in
Vietnam, Smartphone and tablet still low owned and maybe potential with “likely
to buy”
Source: TNS, 2012

46. Hardwares
In mobile phone
demand, smartphone still far behind
from others in ASEA
Source: Ac Niensel, Oct 2011
Compare with other countries in
ASEA, Vietnam is mature of laptop
with the highest demand and
Smartphone, tablet is very potential
with low start

47. Hardwares
How many tech devices people own in Vietnam??? And trend will be increased to
catch up numbers in developed countries???
Source: TNS, 2012

48. Hardwares
Desktop still is the device most owned
by people.
Tablet not yet present in Vietnam
household much as othes
Source: Ac Niensel, Oct 2011

49. Hardwares
In Vietnam there is still strong reliance on PCs for many activities – this will change
as smartphone penetration and understanding grows
Source: TNS, 2012

50. Smartphone
1. Note: Data exclude export number as Nokia, HTC and LG.
2. Some assumptions: iPhone hand carry 5 times than official ones.
3. YoY up to date Q3Y2012 increase 2.4% while Q2, Q3 number down0.84% and 21%
compare with previous. Look back to 2011/2010 market growth YoY 21%.

51. Smartphone
1. Nokia and Samsung still No 1 and No 2 in mobile market.
2. M/S Nokia in increasing trend from 60% to 72% while Samsung decrease too much
from 35.78% to 20%%.

52. Smartphone
1. Smartphone accounts 11 to 16% of total market.
2. However in 2012 Smartphone in down trend caused by gloomy
economy.
3. While all phone market just increase slowly around 2.4% and fixture
phone down 12.54% , smartphone still get high growth YoY with 41%
3Q2012/3Q2011.

53. Smartphone
Samsung get No 1 M/S in smartphone market with 40- 60%, next is iPhone with 10 to
25%.

54. Smartphone
Smartphone usage is set to explode in emerging markets; having a mobile brand
solution ready is paramount

55. Tablet

56. Tablet
In 2012, iPad still dominate tablet market with 70% M/S while Samsung and Asus
nearly 2% too small but others as Kinder, Acer and local tablet brand as Fpt
increase too much with 28% M/S.
In iPad market, Ftw and Jel contribute main number to Apple with 80% M/S.

57. Opportunities
 Growth.
 New.
 Profit Businesses.
 Long term.
Why Samsung and Nokia invest
into factory in Vietnam???

58. Opportunities
Growth
Profit
New
Businesses
Long term

59. Growth
Worldwide Key Tablet and PC
Assumptions
2009 2010 2011 2012 2013
1. Worldwide:
Tablet
Shipments
(millions)
+ PCs gross: slow down growth from Desktops 136 146 152 157 159
Notebooks 135 164 189 210 232
15% to 6% YoY. Netbooks 34 36 29 26 27
Tablets 16 55 85 102
+ Tablets increase considerably 54% in Total 305 362 425 478 520
PCs, gross 305 351 386 416 439
2012 and over pass 100M units in 2013. Tablet
Cannibalization -5 -16 -23 -21
Pcs, net 305 346 370 393 418
+ Tablet cannibalize to PC and Tablets 0 16 55 85 102
Total 305 362 425 478 520
especially netbook cause them slow YoY Growth
Desktops -10% 7% 5% 3% 1%
down in growth. Notebooks 6% 22% 15% 11% 10%
Netbooks 118% 8% -20% -11% 5%
+ Smartphone has big growth in 2011 Tablets
Total 4% 19%
245%
17%
54%
12%
20%
9%
around 61% and then maintain at 20% PCs, gross
Pcs, net
4%
4%
15%
14%
10%
7%
8%
6%
6%
6%
Cannibalization
in next years. IDC expect smartphone Rate 30% 29% 27% 21%
Smartphone
will reach 1B in 2015 Shipments
(millions) 304.7 491.4 582 707
YoY Growth 61.30% 18% 21%
Source: Morgan Stanley
Research, IDC

60. Growth 1. Vietnam:
+ PCs gross: slow down especially in 2012 caused by gloom economy
only 2-3%.
+ While tablets and smartphone still keep high growing with 92% and
51% and as soon smartphone will over pass Pcs.
+ As the same global trend tablets is killing to segment of netbook and
laptop
Vietnam PC Assumptions
2011 2012 2013 2014 2015
Shipments (millions)
Desktops 878,882 893,384 972,766 1,072,149 1,195,116
Notebooks 1,233,632 1,273,008 1,374,064 1,532,526 1,744,212
Netbooks
Pcs, gross 2,112,514.00 2,166,392.00 2,346,830.00 2,604,675.00 2,939,328.00
Tablets
SmartPhones 857,135 1,294,274
S&T
YoY Growth
Desktops 2% 9% 10% 11%
Notebooks 3% 8% 12% 14%
Netbooks
Pcs, gross 3% 8% 11% 13%
Tablets 92%
SmartPhones 51%

61. Growth Why smartphones and tablets bite Pcs???
Tablets, Smartphone signal a change in PC usage: personal
computing usage suggests that computing will increasingly
migrate towards mobile devices, including tablets and
smartphones, over time. Approximately 75% of total personal
computer usage is spent consuming and sharing content, as
opposed to creating content.
Consuming content includes activities like browsing the
web, social networking, listening to music, viewing
pictures, and watching video. Content creation includes
activities such as word processing, creating
spreadsheets, and photo editing. Given this typical usage
pattern, we think consumers will increasingly migrate towards
computing devices such as tablets that are optimized for
content consumption.
Tablets, smartphone are optimized for content consumption.
Mobility and ubiquitous connectivity mean that you can take
a tablet virtually anywhere and have access to personal
content and the web. High-resolution displays are ideal for
web browsing, email, watching video, and reading
books, magazines, and newspapers. Long battery life, thanks
to operating system and processor innovation, means that
one can consume content all day on a single charge (on the
iPad, for instance). Content is robust, offering a considerable
selection of music, movies, TV shows, books, and magazines
that can be accessed with the click of a button. Application
marketplaces offer a wide array of options that significantly
enhance the tablet computing experience beyond tradtional
desktop computing.

62. Growth What make them grow???
Internet and telecommunication Function: Camera, movies, email, webs
background in Vn are readiness: 1. Can match many demand of people for
1. Cost for subscriber is very low, even wifi office, entertainments, search and
free in Coffee shop, hotels and sharing…
restaurants. Operators run big 2. All in one, is useful for travelling people.
promotion for customers. 3. You are not need to be pro to be movie
2. Knowledge of people is increased makers, photographers…
during long time penetration. 4. Smaller, lighter and mobility.
3. High speed connection via broadband
and 3G.
Social, chatting, sharing and search: Apps and VAS: with 3G and high speed
1. Facebook, Zing, Twitter, Pinterest….requ internet:
est people chatting, sharing information 1. Many apps and Vas are created and
via status every hour. free download or with cheap cost.
2. Gamming online 2. Apps serve many kinds of demand from
3. Clips and photos sharing by group books, movies, travelling, commerce, ga
All request Smartphone and tablet have mes, chatting, sharing….
strong specs and high resolution screen to 3. These never did before in Win or PC
serve demands.

63. iPhone: 5 year olds.
New iPad: 2 year olds iPhone
iPad
1. With long year history of PC and Mobile industry, smartphone and
tablets just are new comers but as the human their growth is
quicker than their parents.
2. Vietnam‟s always late 2-3 months with area and global launching
but all come from big cities as Hanoi, Ho Chi Minh. Rural areas
long far behind big cities.
3. Vietnam still strong rely on PCs and feature phones with low base
knowledge and obviously cheap price.
4. Very a few of retail shops have full service for customers such as
high educate sale-man, training course, live display of products
and integrate solution…

64. New
New makes smartphone and tablet
more attractive and more curious.
And that is the reason why they
made a wave of standing out side
retail shop in launching day to be
the first ones own hot new products
even:
1. These products in first launching
are expensive ones.
2. After some weeks all of them
will be on shelf.
Of AlphaWise surveys, interest in tablets is
the highest. To put these numbers into
context, extreme interest in purchasing a
tablet computer is higher than in any
survey we have completed over the last
three years and 2.5 times higher than
tablet purchase intentions in March 2010.
What‟s more, extreme interest in
purchasing a tablet is 1.5 times higher
than iPhone purchase intentions
indicated by our March 2010 survey
(exhibit 6), and Apple is on track to sell 47
million units in the 12 months following the
survey.

65. Why do not think you can sell Smart TV with
Profit
Businesses
tablets, smartphones???
Accessories: smartphone and tablets
considered as high value ones so
they need:
Sale
1. Protect cases, screen.
2. Fashionable cases, bags.
3. Normally one hardware sold out
accompanies by 2 accessories
Services: smartphone and tablets Hardware Hardw
request users have high knowledge 20%
80%
and demand:
1. They need training course.
2. Online advices.
3. Download
Apps, music, photos, movies, onl
ine games.
4. Warranty services.
Access
Refurbished: smartphone and Access Service
tablets are high price and the most Serv
desire so: 80%
20%
1. Not many people can afford to
buy.
2. Many people want to upgrade
and change old to new ones
and they want to sell.
Chance to run refurbished business,
let see Apple  Profit

66. Profit
Businesses
Apps for cooperates, restaurants…:
1. a survey of 50 enterprise CIOs and came to a similar
conclusion, but the number of companies actually
purchasing tablets for employees, versus those
allowing employee-owned tablets on the
network, was the most interesting takeaway. As our
survey shows, 21% of companies currently purchase
tablets for employees, but a staggering 51% of
companies expect to purchase tablets for
employees over the coming year (exhibit 11). In
total, 67% of companies surveyed expect either to
purchase tablets or provide support for employee-
owned tablets over the coming year.
2. Companies are finding a broad set of uses for
tablets, including general productivity, sales, field
service/support, management, heathcare, and
others. The iPad‟s operating system, iOS, has several
important enterprise security and management
features that have enabled the strong adoption in
corporate environments. What‟s more, a growing set
of powerful third-party business applications and the
ability to create customized applications for business
is creating new, powerful use cases.

67. Smartphone and tablets mean that we look to mid and high
Long term end segment with knowledge customers. And in return they
ask about good service and well consultant sale to keep
their loyalty. They are not much sensitive about price if
receiving value equivalent to their cost.
Products& Sale volume Long-term & Loyalty
High
High
Mid Mid
Low Low

68. Challenges
 Barriers.
 Threatens from Macro Economy.
 Threats or Opportunities

69. Barriers
Smartphone and tablets are not entry segment, if you
want cheap price should go Amazone and Ebay but no
service . Barriers to this business:
1. Live display investment.
2. High consultant sale and well educate customers.
3. Training courses and offline operations for customers.
4. The great data of apps, movies, games, music…
5. Manage system.
6. Need big and long investment not a short-term
money.
7. Experience in value retail market.
That is not like a big and nice design store mean that
customers will come but depend on what you give
insight benefits to them???

70. Threats (Ac Niensel Source)
Cooperate
High
operation Shortage of
Economy cost production
capital
Increasing
High
High inflation Electric
Inventory
price: 15%
Increasing Increasing
petrol price gas price
High bank Deflation Saving Cut down
interest rate economy money Expenditure
Look for
Freeze Low income
more
property or jobless
Customer promotion
and cheap
price Buy
Vietnamese
products or
on
package, gr

71. Threats or Opportunities
Opportunities:
1. Customers in Mid and high segment are less affected
by deflation of economy.
2. Customers will consider not only price but services and
other extra values.
3. Chance for online shopping and refurbished business.
4. Time to invest into the bottom point and reorganize
company.
Competition:
1. Many companies go bankrupt as
Wonderbuy, Bestcaring, 24h Nguyen Kim.
2. Cut down investment into expansion and new business.
3. Cut down cost for advertising, services….

72. Thank you!