Under $200 smartphone sales soar as Vietnam phases out 2G networks

By Phong Ngo December 18, 2024 | 12:41 am PT

Sales of budget smartphones have surged to their highest levels since 2022, driven by the shutdown of the 2G network and an influx of first-time smartphone buyers.

In the third quarter the share of smartphones priced under US$200 hit 51%, the highest since Q1 2022, with brands like Xiaomi, Oppo and Samsung being the most popular, Nikkei Asia quoted Counterpoint Research as saying.

Data from Counterpoint shows further that 83% of phones sold during the quarter were priced at $600 or less.

"The share of 4G smartphones will remain high in the coming months in Vietnam, and OEMs (original equipment manufacturers) will look to clear off their 4G stocks in the entry-level segment," Counterpoint said, calling the phase-out of 2G a "milestone."

A person using a smartphone. Illustration by Pixabay

Vietnam shut down its 2G network in October to pave the way for 4G and 5G technologies, prompting businesses to offer financial support and other incentives to encourage the last holdouts.

Telecom operators like Viettel, FPT, VNPT and Mobifone rolled out trade-in deals and internet data plan vouchers, especially in rural and low-income areas.

According to the Ministry of Information and Communications, nearly all 2G subscriber connections, which numbered 18 million in January, have been deactivated.

Vietnam plans to phase out 3G, which has 38.2 million subscribers, by September 2028 and aims to achieve 99% 5G coverage by 2030.