The Sri Lankan smartphone market witnessed an impressive 218% year-on-year (YoY) growth in the second quarter of 2024, shipping 365,000 units.
This surge marks the fifth consecutive quarter of triple-digit growth, driven by the festive periods of Sinhalese New Year, Vesak Poya, and Poson, which traditionally see a rise in consumer spending. During these periods, new brands and models were launched to cater to the increasing demand for affordable yet high-spec smartphones.
Sri Lanka’s Smartphone market stats
Key Highlights:
- Rising Consumer Demand: The Sri Lankan market’s growth was propelled by increased consumer demand for smartphones equipped with advanced features at competitive price points, spurred by the festive season promotions and discounts.
- Expansion of Chinese Brands: Chinese smartphone manufacturers have been aggressively expanding in the Sri Lankan market through strategic channel partnerships, enhancing their reach and availability across the island.
- Increased Average Selling Price (ASP): The ASP for smartphones in Sri Lanka reached US$152 in 2Q24, a 19.2% increase YoY, reflecting the shift towards higher-spec devices. The low-end segment (US$100–US$200) dominated with 50% of the market share, followed by the ultra-low-end segment (<US$100) at 34%, and the mid-range segment (US$200–US$400) with 13% share.
- Dominance of Retail Channels: Retail channels accounted for 98% of the smartphone sales, as consumers prefer to see and test devices before making a purchase. This was facilitated by the expansion of multi-brand outlets and chain stores by national distributors.
- 5G Smartphone Penetration: With the acquisition of Airtel and Sri Lankan Telecom, Dialog Axiata has become the largest telco in Sri Lanka, driving 5G network expansion. 5G smartphones accounted for 25% of total smartphone shipments in the country during 2Q24, contributing to a 354% YoY growth in 5G devices.
Market Leader Insights:
Honor led the Sri Lankan smartphone market with a 21% market share, driven by strong sales of its X7b model. Samsung and ZTE shared the second position, with Samsung’s Galaxy A05 and ZTE’s Blade A34 emerging as the top-selling models.
Future Outlook:
The Sri Lankan smartphone market is expected to sustain its growth momentum in the coming quarters, supported by continued investment from Chinese brands and Dialog Axiata’s ongoing 5G rollout. However, external factors such as political instability and economic uncertainties could pose challenges to sustained growth in the longer term.
With these trends, the Sri Lankan smartphone industry is poised to become a key player in the South Asian market, offering significant opportunities for manufacturers and distributors alike.
Source: The International Data Corporation (IDC)
Last modified: October 9, 2024
