With numerous smartphones on sale, ranging from budget entry-level phones, to flagship devices with the best specs, now is a great time to buy smartphones. Though what’s all the rage today are the midrange models that feature higher-end specs at lower prices. One such phone is Oppo’s F1s, which is being offered with 0% interest rates and low monthly payments, all thanks to consumer finance company Home Credit.
With the Philippines now crowned as ASEAN’s fastest growing smartphone market, and the global market at large growing 3.8% in Q1 2016, game-changing partnerships—such as financing options that allow more consumers to buy higher-end models at 0% installments—may prove to be the x-factor in sustaining growth.
This is according to Prague-based consumer finance company Home Credit, noting that its financing services have helped fast-growing players such as OPPO gain significant revenues in previously untapped market segments in the country, leveraging on the ever-growing appetite of Filipinos for the latest gadgets.
“It is definitely an exciting time not just for smartphone makers, but smartphone users, as even the flagship phone models are more accessible than ever,” remarked Home Credit Philippines Head of Sales Adam Bernasek. “Consumer financing has played a key role in bridging this gap.”
Bernasek cited Home Credit’s recent three-month promotional tie-up with OPPO, which offered the OPPO F1 “selfie expert” smartphone at low monthly payments with 0-percent interest, as a notable case study. The promo generated nearly P280 million in loans for the OPPO F1 model, with the F1 accounting for five out of 10 products purchased through Home Credit in all establishments offering the promotion.
For its part, OPPO finds itself in a winning streak, as it continues to rapidly gain market share not just in the Philippines, but the rest of the region. Data from a Gartner report show that OPPO enjoyed a sales growth of 145 percent in Q1 2016, giving it the best performance of the period ahead of other leading brands. OPPO has since jumped up in the overall global rankings for smartphone brands.
The same Gartner report noted that overall, smartphone sales were driven by demand for entry-level models in emerging markets such as the Philippines. However, consumers have also shown an increasing desire for better specs—such as for processors and cameras—at affordable prices.
With new financing options in place to allow more customers to get their hands on these higher-end models, the prospects of the local smartphone industry are more bullish than ever.