Cell phones have become a necessity for many people throughout the world.

The ability to keep in touch with family, business associates, and access to
email are only a few of the reasons for the increasing importance of cell
phones. Today's technically advanced cell phones are capable of not only
receiving and placing phone calls, but storing data, taking pictures, and can
even be used as walkie talkies, to name just a few of the available options.

When cell phones were first introduced to the public, they were bulky,
expensive, and some even required a base unit that had to be transported
along with the phone. Good reception was a major problem and in general,
early cell phones could only be used in certain locations were the signal was
particularly strong. As cell phone technology advanced, the difficult in using
them became less of a problem. Today, cell phone reception has improved
greatly due to the use of satellites and wireless services. As cell phones
improved and became simple to use, the importance of cell phones increased
accordingly.

Cell phones are the perfect way to stay connected with others and provide the
user with a sense of security.

In the event of emergency, having a cell phone can allow help to reach you
quickly and could possibly save lives. However, the importance of cell phones
goes way beyond personal safety. Modern cell phones are capable of internet
access, sending and receiving photos and files, and some cell phones are
equipped with GPS technology, allowing for use in most locations around the
world and allowing the cell phone to be found or the user located in the event
of loss or emergency.

Cell phone reception has become reliable and of high quality due to advances
in wireless technology. Wireless service providers offer excellent packages and
promotions for cell phone users. Finding a dependable service provider is no
longer an issue for cell phone users. The expansion of the wireless service
provider industry gives cell phone users a choice and the increased
competition has caused a drop in prices of wireless cell phone service. The
importance of cell phones goes way beyond the ability to make or receive
phone calls. Cell phone users can instantly send data to the home or office,
check for important email, use their cell phone as a PDA or calendar, and store
photos which can be easily transferred to a PC or laptop computer.
Cell phone manufacturers have produced a wide range of cell phones, which
sell for prices that range from very inexpensive to over one thousand dollars.
The available options give users the choice of purchasing a basic cell phone to
use simply for making calls, or choosing a complex, technologically advanced
cell phone that can perform as many or even more tasks that a home
computer. Over the past decade, the increasing importance of cell phones has
made them almost a necessity for most people. Even remote and
underdeveloped countries have some access to cell phone technology and
wireless services.

The importance of cell phones has increased the competition in the wireless
service provider industry, making cell phones very affordable and very easy to
use. Cell phones have become almost a status symbol in addition to the
convenience and security that comes from owning them.

History[edit]
Apart from being the first legal mobile phone brand with dual and triple Subscriber Identity
Module (SIM) systems in the Philippines,[4] Cherry Mobile also marketed the first Windows-enabled
phone in the country as a result of an exclusive partnership with Microsoft.[5]
In 2013 Cherry Mobile expanded its market by distributing their products in Thailand and in
Myanmar.[6]
In 2015, Cosmic Technologies, along with rival mobile device company MyPhone, partnered
with Google for the Android One initiative, both of them releasing their respective devices based on
Google's reference designs using MediaTek's quad-core MT6582 system-on-chip.[7][8][9]
In June 2015, the Cosmic Technologies announced that they will be launching two Windows
Phone handsets preloaded with Windows 10 Mobile under their mobile phone brand, namely the
Alpha Prime 4 and the Alpha Prime 5, which was released on the second half of 2015. Both devices
come with a 1.1 GHz quad core Qualcomm Snapdragon 210, support for WCDMA 900/2100, FDD-
LTE B1/B3/B5/B7, and a 2 megapixel front-facing camera. The Alpha Prime 4 will have a 4-inch
screen, a 5 megapixel main camera, 4 GB of ROM, and 512 MB of RAM, while the Alpha Prime 5
will have a 5-inch screen, 8 megapixel main camera, 8 GB of ROM and 1 GB of RAM.[10][11]
Cherry Mobile Flare S7 series' specifications and design were leaked ahead of their launch on
October 12, 2018. Its design for the S7 Deluxe and Plus series were using the long notch from
the iPhone XS[12]

ith Jaiyu handling the manufacturing side of Cherry Mobile devices, Filipinos can expect
the next wave of excellent smartphones to have superior quality at reasonable prices.
Cherry Mobile’s move to adept its Research and Development end hints at future
product lines having significantly better specs, parts, designs, and even firmware. This is
part of the company’s vision to be a recognized force in tech and design innovation,
which will greatly bolster its reputation as a leader in its trade. With Jaiyu’s incredible
R&D capacity now part of the company’s core capability, Cherry Mobile products are
expected to dazzle and wow everyone in the coming months and years.
In 2015, Cherry Mobile and Globe Telecom entered a groundbreakingpartnership to
launch the Cherry Prepaid SIM and other phone bundles that offer a value-packed SIM
card with mobile data connectivity that allows users to earn monthly rewards and
rebates. The SIM cards and bundles now allow more Filipinos to enjoy not just standard
calls and texts but also Internet connectivity, the latter becoming an important tool for
everyone in the age of social media. This partnership is once again a testament to Cherry
Mobile’s dream of providing the best connectivity for Filipinos.
Filipinos were also becoming increasingly tech savvy, their expectations in mobile
devices burgeoning as more players came in the market. But mirroring the resilience and
innovation of our culture, Cherry Mobile delivered greatly on their goal, which was an
outcome of that very same dream they had when they first started. What began with
providing quality yet affordable handsets, exciting phone bundles, and value added
services have now evolved to providing data and Internet connectivity to the masses by
way of offering quality yet affordable smartphones for Filipinos.
With the FLARE series, Cherry Mobile has achieved an almost impossible feat: offering
a high-quality device at a lower cost. The launch of the FLARE series of mobile phones
allowed Cherry Mobile to break through the smartphone market in 2015 with a wider
range of handheld devices that were phenomenally power-packed but at significantly
lower prices than that of its counterparts with almost the same specs. The launch of this
popular line of handsets packed with upscale aesthetics and impressive technology,
particularly the Flare S4, was a successful breakthrough in the high-end mobile category
catered towards the more discerning consumers.

With the success of the FLARE series, Cherry Mobile upped the ante with a significant
move that shook the mobile industry: the game-changing acquisition of Jaiyu. Jaiyu is
the original device manufacturer responsible for the design and build of the FLARE
series that was launched early this year. With a controlling stake in this company,
Cherry Mobile now has even greater capability to produce more custom-designed
dream devices with Filipinos in mind as the former brings in a more dynamic Research
and Development for its products, as well as better control on the custom designs of
newer sets—both of which greatly support Cherry Mobile’s dream of a more connected
Philippines. With Jaiyu handling the manufacturing side of Cherry Mobile devices,
Filipinos can expect the next wave of excellent smartphones to have superior quality at
reasonable prices.

Cherry Mobile’s move to adept its Research and Development end hints at future
product lines having significantly better specs, parts, designs, and even firmware

Economic

Cherry Mobile’s care extends beyond its customers. The company has been quietly
supporting projects that benefit numerous communities and groups of people through its
Cherry Cares program, such as setting up feeding programs to help improve the health of
severely malnourished kids; setting up sustainable food programs; setting up typhoon
relief operations; setting up livelihood projects for women in the underprivileged urban
community; donating for the infrastructure and non-infrastructure support for Adopt-a-
School projects; and technology support for the preservation of endangered species,
among others.

HEAVY INVESTMENT IN MARKETING ACTIVITIES

Smartphone manufacturers in the Philippines are investing heavily in marketing and

advertising campaigns. Many of the campaigns focus on the fact that the Philippines is
well-known for its high social media consumption and thus marketing strategies often
centre around the photo-taking capabilities of smartphones.

LARGER SCREEN SIZES CONTINUE TO BE FAVOURED BY

CONSUMERS

Smartphones with a screen size of 5.5 inches and above, colloquially known as
“phablets”, continued to gain ground in 2018 as more activities are being carried out
on smartphones, such as gaming, streaming videos and participation on social media.
COMPETITIVE LANDSCAPE

CHERRY REMAINS THE LEADING BRAND IN SMARTPHONES

Cosmic Technologies, the NBO of the Cherry brand, remained the leading player in
smartphones in 2018. The company’s ability to retain its leading position in a highly
competitive category can be attributed to a combination of affordable products,
improved distribution and marketing and a deep understanding of local consumers,
especially those in rural areas.

ESTABLISHED MANUFACTURERS FACING STRONG COMPETITION

FROM CHINESE PLAYERS

Chinese smartphone manufacturers such as Xiaomi, Huawei and Oppo are

intensifying their marketing and retailing strategies in the Philippines. They all
frequently use local and international celebrities to endorse their brands in an effort to
improve consumers’ perception of Chinese-made smartphones, which were previously
viewed as being of poor quality.

People Giving Up Land Lines

Another factor that has increased sales of mobile phones is the phenomenon of people who
already had land lines giving them up in favor of exclusive use of their mobile phones. Since
mobile phones can be used at home or in other locations, many people prefer to pay only for the
mobile phone account, and to use it as their home phone when at home.

Permits/ Licenses  Legislative Franchise – Pursuant to RA 7925, no person/ entity may conduct telecom
business without obtaining a franchise. This franchise, as embedded in the Article XII of the Philippine
Constitution, may only be granted to citizens of the Philippines or to corporations or associations
organized under the Philippine laws and may only be granted by the Congress. However, the
participation/ ownership of foreign investors in any public utility enterprise, in this case the telecom
industry, is limited to 40% and all executive and managing officers of a certain telecom corporation must
be citizens of the Philippines.  Certificate of Public Convenience and Necessity (CPCN) – CPCN, as issued
by the NTC, requires carriers to prove that they are technically and financially viable to operate. It
contains the description of service, specific rate to be charged for the service and regulations, among
others. In granting a CPCN, NTC may impose conditions such as the duration and termination of the
privilege, concession, or standard or technical aspects of the equipment, rates, or services. The validity
of the CPCN shall not be shorter than 5 years but not longer than the life of the franchise granted. Any
expansion/ upgrading/ financing of networks and services aimed at providing additional services to cater
to the demand which utilizes equipment compatible to or homologous to previously approved plant and
facilities, shall not require any approval by the Commission.

G smartphones gained traction with a 54% share, while Android market share in the
Philippines was estimated at 97%.

In terms of brands, Cherry Mobile led with a 21% share; other brands combined for
42% of the market, with Samsung taking up 12%; MyPhone 11%; Oppo 8%; and
Asus 5%.

IDC said that phablets or “phone tablets” with a screen size of between 5.5 and 7
inches recorded significant growth in recent years, accounting for about a quarter of
smartphone shipments in 2017. “As mobile content continues to grow, smartphones
have become the primary device for basic productivity and everyday media
consumption, and this fuels the need for larger screens and higher specs,” Mr. Ooi
added.

In the personal computer (PC) market, IDC said that the Philippines is “among the
few remaining bright spots” for traditional PCs in the Asia-Pacific.

“Over the past five years, the Philippine PC market has been growing at a compound
annual growth rate (CAGR) of 3%, while its ASEAN neighbors have been declining
at CAGRs of around -3% to -12%,” IDC said.

he cell phone and Smartphone industry in the Philippines is a thriving and growing business. The
number of people owning a mobile phone has jumped from 14.8 million in 2013 to 27.5 million in
2016. That’s a lot of people. It puts the Philippines as the third largest cell phone user in Southeast
Asia. The trend is forecast to increase to 38.4 million users by the year 2020.

Current Trends

Smartphones sales are trending up while less capable feature-based cell phones are trending down
regarding total sales. This can be attributed to the entry of larger companies in the market focusing
on smartphone sales at a lower price because of the existence of low-cost smartphones sales from
local providers such as Cherry Mobile. Global players like Acer and Lenovo are competing with the
local vendors, and that serves to drive prices down while jacking up the volume. Feature phone
providers like the local Philippine company Cosmic Technologies has seen a consistent drop in
sales volume and remains one of the few companies still in the feature phone business.

The compound annual growth rate (CAGR) for smartphones is +20% while CAGR for features
phones is on the decline at a -28% percent rate.
hilippines smartphone shipments fall for first time
Allan Tan

April 12, 2018

telecomasia.net

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Smartphone shipments in the Philippines have declined 7% to approximately 15 million

units in 2017, according to IDC.

The research firm's latest Asia/Pacific Quarterly Mobile Phone Tracker and Asia/Pacific
Quarterly Personal Computing Device Tracker also revealed that tablet shipments fell
30% year-over-year (YoY) to just 1 million units.

Smartphone shipments recorded the first decline since its introduction into the local
market as intense competition from top brands - such as Samsung, OPPO, and vivo -
resulted in some vendors being ousted from the market.

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Tablets continued to decline as their significance in the market waned due to the lack of
practical use cases and cannibalization by smartphones with larger screen sizes.

According to IDC, Philippine users are shifting to handsets with higher specs and better
features, going against the traditional observation of device users in the Philippines
being among the more price-sensitive in Asia-Pacific.

Jensen Ooi, Senior Market Analyst, Client Devices, IDC ASEAN noted that while end
users will continue to consider specs as one of the important factors when purchasing
their next smartphone, the next “wow” factor they will be looking out for are the features
that enhance their experience.

“In the short term, they would also consider the latest appealing features with the most
relevant use cases, namely multiple cameras that enhance the photography and 18:9
screens that give a better viewing experience. These features were only limited to high-
end flagship phones in the past but have become more commonly available in
reasonably priced midrange (US$200<US$400) handsets as well now,” he added.

On-device AI remains at this point.

Despite this, the average selling price of smartphones in 2017 grew to $134, a 13% YoY
increase with ultra low-end smartphones (<$100) holding the lion's share of the market,
accounting for 59% of all smartphones in 2017 compared with 67% in 2016. Meanwhile
the combined share of low-end ($100-$199) and midrange ($200-$399) smartphones
grew to 35% from 28% in 2016.

Samsung and Chinese brands such as OPPO and vivo were the key driving brands that
led to the growth of the low-end and midrange segments in 2017. "Heavy marketing
campaigns and lucrative sales promoter incentives enabled these brands to strengthen
their mindshare in the local market, increase their shipments, and grow their respective
market shares,” Ooi said.

“The assault of these brands affected the sales of some of the players, resulting in them
reducing their supplies, which ultimately impacted overall smartphone shipments.”

From a screen size perspective, phablets (5.5”-6.9”) recorded significant growth in

recent years, accounting for about a quarter of smartphone shipments in 2017. "As
mobile content continues to grow, smartphones have become the primary device for
basic productivity and everyday media consumption, and this fuels the need for larger
screens and higher specs," Ooi added.

The loser in this trend are slate tablets (7”-10.9”) which are seeing declining says
because they cannot offer the same level of practicality that phablets provide.

Trending in 2018

The smartphone market in the Philippines is expected to rebound in 2018 as

competition between popular brands, which will continue to strengthen their positions,
and local and minor brands, which will continue to struggle to stay relevant, intensifies.
"We expect smartphone vendors to continue shipping in more phablets and equipping
their new models with enticing features, such as dual cameras, thin bezels, and on-
device artificial intelligence,” Ooi concluded.

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