Canalys: Southeast Asia's smartphone market to grow 4% year-on-year in Q4 2023

Canalys' latest research shows that the Southeast Asian smartphone market grew 4% year-on-year to 23.8 million units in the fourth quarter of 2023. The region had a weak start to the year, affected by macroeconomic headwinds and inflationary conditions, which led to a sharp drop in consumer spending. Since then, the market has rebounded, and consumer demand for smartphones has begun to recover, driven by active launches and channel incentives.

Canalys analyst Sheng Win Chow said: "Smartphone manufacturers are taking advantage of the upward trajectory of economic recovery, with Samsung maintaining its lead in Southeast Asia with 18% market share, despite a 17% decline compared to the same period last year. The company's strategic shift to boost the high-end market has weakened the competitiveness of its low-end models ax and A1x relative to other Android brands. Notably, Transsion took the second place for the first time, accounting for 16% market share and achieving a year-on-year growth of 153%, driven by strong performance in Indonesia and the Philippines and expansion into new markets. Xiaomi and OPPO both had a market share of 15% in the region, with Xiaomi's market share increasing by 44% year-on-year and OPPO's market share decreasing by 27% year-on-year."

Canalys analyst Le Xuan Chiew said: “Devices priced below $299 continue to drive the majority of sales in Southeast Asia, accounting for 82% of total sales in the fourth quarter of 2023. Leading the way is Transsion, which took the top spot in smartphone shipments in the region for the first time in December last year. Intensified price competition and market saturation have created challenges for vendors in pricing and positioning their products in this segment. Premium players such as Samsung and OPPO have found it difficult to compete directly with price-centric models launched by brands such as Infinix, Tecno, Xiaomi and Realme. Instead, they aim to differentiate themselves beyond price by leveraging premium channels such as brand stores and telecom partnerships, which are less price-sensitive.”