Why Some Phones Are Not Available in the Philippines

Google launched the Pixel 8a a few hours ago, and one thing is certain: it’s not going to be available in the Philippines. Why have Google and other phone brands not officially released their phones here in the country? We break down some of the possible reasons why.

We’re no business geniuses, but these could be some of the possible reasons why some brands and devices, such as Google’s Pixel devices, have not officially landed on our shores.

Importation, Regulation, and Operation Costs

Importing a phone is not easy, a brand has to go through a lot of paperwork and fees to make sure their phone models arrive without a hitch in our ports. Getting customs permits is one along with the high import fees, but the brand should also register the device with the NTC to determine if it works well with available local bands, and the Optical Media Board as well since devices that use internal storage mechanisms should be cleared with the agency.

Add to that, one has to build and maintain a local office for Philippine operations, hiring hundreds of employees, and making sure that your device gets to retailers through distributorship. Plus, building official local service centers to cater to aftersales services, too.

Pricing, Market Saturation, and Consumer Demand

Pricing also plays a factor. Google’s smartphones could be priced higher than they should have if they enter the Philippines, a smartphone market where many choose to purchase bang-for-the-buck affordable phones at lower prices. The new Pixel 8a starts at Php 33,900 in Singapore for the 128GB option alone. Filipinos like to see hardware specs on paper rather than up close, so it’s most likely that the phone will be criticized for having such a measly storage capacity at that price point in 2024.

Smartphone brands also need to forecast the demand for their products in the country they want to break their devices in an already saturated local smartphone market. A wrong step and they could flood retail stores with device models that are not moving at all, staying on shelves for longer than they could anticipate while other brands are sold off the shelves like hotcakes.

Case in point: Sony. The Japanese brand used to have a good lineup of Xperia phones in the country, with a modest cult following for their products due to great engineering and trademark design, among other reasons. Weak consumer demand and its struggle to compete with emerging Chinese brands producing more powerful and affordable phones at the time made it reconsider its strategies in several global markets, subsequently exiting from the Philippines in 2019.

Competiton from the Grey Market

And then there’s this: the Grey Market merchants that either take advantage of a brand’s absence in the market by jacking up their prices when demand for locally unreleased products increases, or pricing their devices lower than the SRP when the official product gets released. Grey Market sellers are oftentimes cited to sell devices that do not have official local certifications as they are imported by merchants themselves from official stores in other countries, which explains why they can be sold cheaper. This is how many local Pixel users in the country have acquired their Pixel phones in the past years.

High risks are included, as your gray market purchases aren’t typically covered with a local warranty. In case of any manufacturing defect, you’ll have to return it to the shop you’ve purchased it with, and the process can take months depending on how proactive the merchant is with returning your order for repairs or how fast the service center will repair your device.

One thing is for sure: companies will recognize whenever there is demand for products to be officially available in the Philippines. With more favorable business conditions and stronger consumer demand for premium devices, Google can definitely thrive as a good competitor to other brands offering premium phones in the market.