On February 12, market research firm Canalys’ latest research reveals that Southeast Asia’s smartphone market rebounded in 2024, with vendors shipping 96.7 million units – up 11% year on year after two years of decline.
OPPO led the market for the first time, capturing an 18% share with 16.9 million shipments, marking a 14% annual increase, which reflects its success in product calibration and high-end investments. Samsung followed closely in second place with 16.6 million units and a 17% market share. TRANSSION and Xiaomi took joint third place, each securing 16% of the market, while vivo rounded out the top five with a 13% share.
Among the several chinese companies, OPPO, vivo, and Xiaomi have been deeply rooted in Southeast Asia for many years, establishing extensive channel distribution systems to sell their products. TRANSSION, on the other hand, started from the African market and has been expanding into developing markets worldwide. By offering phones with prices of hundreds of yuan to thousands of yuan, it competes with its Chinese counterparts on cost-effectiveness and leverages its insights into different markets to carve out a niche.
The high-end smartphone market in Southeast Asia has gained momentum, driven by vendors expanding their distribution through new channels. Brands that invested in their channels during the 2023 slowdown are now capitalizing on those efforts, ramping up marketing to attract a growing base of upgraders.
To ensure long-term profitability in the premium segment, all brands must minimize price and margin erosion from heavy promotion subsidies caused by overstocking. Brands have been doing this by forging partnerships with sales channels and local financing solution partners to expand user bases and affordability with more financing options.
Prudent inventory management will shape vendor strategies in 2025. The frequent reshuffling of vendor rankings in Southeast Asia highlights that volume leadership alone is no longer a reliable measure of a brand’s market position. Other key factors – such as value share, operational efficiency and profitability – are just as important in assessing a brand’s overall health and competitive standing. In the long run, vendors that expand revenue streams beyond device sales – into software and services, for example – will secure a stronger foothold in the market.