Smartphone shipments in Southeast Asia continued to rise at the start of 2024, in contrast to a lull in other regions, as the potential market for mobile manufacturers drew more brands and investment.
According to Canalys’ analysis published Wednesday, the top five markets in the region delivered 7.26 million smartphone units, a significant 20% rise over the same period last year.
The results build on a market bounce that began in the fourth quarter of 2023, when Southeast Asia phone shipments grew year on year for the first time in nearly two years, amid a broader post-pandemic industry recovery.
According to Canalys analyst Le Xuan Chiew, easing inflationary pressures, bolstered by government support and momentum from the region’s year-end 2023 sales events, have seen consumer sentiment and spending recover.
“To capitalize on this market resurgence, smartphone manufacturers, which adopted conservative strategies in the last six months, are now deploying aggressive tactics to gain market dominance,” he said in the release, citing trends such as affordable 5G, AI integration, ecosystem development, and channel optimization.
Samsung reclaimed its top market share in the region in January after successfully launching its premium S24 series, which featured enhanced battery life and additional AI capabilities.
However, Chinese competitors are focusing more on the market, gaining momentum and introducing new phone models at competitive pricing. Xiaomi, the region’s second largest phone brand by shipments in January, experienced 128% year-on-year growth, while Transsion, a relative newcomer to the market, witnessed 190% growth.
“The region’s increasing disposable income from an expanding middle-class and young population entering the workforce are strong reasons to expect increased investments,” Cheiw stated in a press release.
Southeast Asia’s high smartphone shipments contrasted with China, the world’s largest smartphone market, where smartphone sales fell 7% year on year in the first six weeks of 2024, according to a Counterpoint Research analysis released Tuesday.
While the decrease in sales in China was exacerbated by exceptionally high sales in the beginning of 2023, senior analyst Ivan Lam stated in the research that other factors have held the market down.
“Consumer confidence will need to rise to stabilize the market, but it is a tough call right now with everything that is happening, especially in the real estate sector,” he added.
Apple’s smartphone shipments in China fell 24% in the first six weeks of the year, according to the report. This fall was caused in part by the comeback of local competitor Huawei, as well as abnormally large shipments by Apple in the start of 2023 because to prior production delays.
However, as smartphone industry growth slows in China and the United States, premium phone companies such as Apple and Huawei are increasingly moving to emerging regions such as Southeast Asia, which are expected to grow.
According to Canalys research, Southeast Asia’s phone market is expected to increase 7% year on year in 2024, well outpacing the global average of 3%. Meanwhile, China is expected to expand by 1%, while North America’s market is expected to remain stable.
According to Bloomberg, Apple is already planning its first retail outlet in Malaysia. Meanwhile, Huawei has strengthened connections with Southeast Asian partners, including the Indonesian telecoms company Telkomsel.
According to the Canalys analysis, Indonesia remains the largest Southeast Asian smartphone market, accounting for 38% of shipments in January. The Philippines, the second largest market, experienced the most robust growth, with shipments up 77% in January compared to the previous year.
Thailand, Vietnam, and Malaysia were the next three largest markets, in that order. Vietnam was the only country to see a year-on-year shipment dip, falling 2%.
