Smartphone users in Asia are spending more time connected to the Wifi as lockdown measures are being implemented throughout the region to reduce the spread of coronavirus infection.
According to Opensignal, a mobile analytics company, there was a large week-on-week jump in the Philippines of people spending “Time on Wifi” in the week ending March 22, with the country’s main island placed under quarantine. They also detected a smaller but still significant week-on-week increase in Time on Wifi in the second week of March.
Other countries also experienced significant increases in the third week of March, including Malaysia and Australia. However, Time on Wifi declined in South Korea, which likely reflected reduced consumers’ concerns, they noted.
Opensignal first detected a statistically significant week-on-week increase in the percentage of time Thai smartphone users were spending on Wifi in the second week of March, starting March 9.
Thailand’s Time on Wifi rose by 3.1 per cent week-on-week to 41.1 per cent that week, up from the 39.8 per cent seen during the first week of the month. It climbed up again in the third week of March to 41.5 per cent.
“As people are spending more and more time at home, this is increasing,” they said in a statement. “Normally, people spend more of their time connected to Wifi on weekends and during public holidays — demonstrating that it is a good indicator of increased time spent at home.”
They added the fluid and fast-moving situation means that people have adapted their lives to a ‘new normal’, but it is one which has not yet stabilized. Countries are at different stages in their transition, they noted.
However, there is a surprise drop in the MSCI world telecommunications services index of 13 per cent in the first quarter of 2020. High fixed costs, debt and market disruption left telecommunications to significantly underperform, Amundi Asset Management told Reuters. Telecommunication services have spent more to service the increasing in demand while roaming revenue has dried up, they added.
In Thailand, brokers are still recommending telecommunication shares as their prices have dropped earlier, along with the Stock Exchange of Thailand, but they are still benefiting from social distancing. However, they have also taken on debt when 100 billion baht was raised in the 5G multi-band licence auction in February.
Avin Sony, head of Institutional Sales at Asia Plus Securities, said that telecommunications in Thailand is now facing uncertainties as the National Broadcasting and Telecommunications Commission will be meeting with providers to discuss potential discounts to customers.
A 1 per cent drop in average revenue per user (ARPU) would reduce ADVANC bottom line by 2.5 per cent, DTAC by 8.7 per cent and increase TRUE’s net loss by 51 per cent, he said.
The meeting will be held on Wednesday amid the negative sentiments for telecommunications. But if the request for discount is not materialized, it could provide an attractive buying opportunity for ADVANC and its parent INTUCH, Avin added.
Shipments down last year
According to IDC’s press release last Friday, Thailand’s shipments of smartphones were down by 5.5 per cent in 2019. Around 18.2 million units of smartphones were shipped then.
They said that shipments of operator-branded phones from Thailand has declined as telecommunication services partnered with other global and China-based players to range their affordable smartphones on attractive telco plans.
Samsung kept the top spot with a 24 per cent market share, followed closely by OPPO with a 22 per cent share, they added. Here are the highlights from each company in Thailand in 2019:
- Samsung, declined by 5 per cent year-on-year as they phased out the J series which was its volume driver in 2018 and focused more on the A series with its competitive specs and price. The A10 and A10s were its top selling models in 2019.
- OPPO grew by 14 per cent and gained market share with its affordable A series and a strong uptake in the telco channel. The A5 and A5s were the top selling models.
- vivo grew by 23 per cent and gained market share with its affordable Y series and more telco partnerships. The Y91 and Y11 were its top selling models.
- Huawei declined by 28 per cent as it encountered disruptions to its sales due to lack of new launches that would support Google services. The Y7 Pro and the nova 4 were its top selling models in 2019.
- Apple increased by 22 per cent as higher shipments of the new iPhone 11 were brought in which had an attractive price due to a strong Thai baht last year.
