In the first quarter of 2023, the smartphone market in Southeast Asia fell by 21, but the future is still foreseeable

Source: Canalys

    In the first quarter of 2023, the smartphone market in Southeast Asia decreased by 21% year-on-year, with shipments dropping to 20.9 million units. As consumers remained cautious in finance and reduced their spending on consumer electronics, Southeast Asia experienced another quarter of decline following the previous four quarters. Due to the good market response of new models at various price points, Samsung was able to expand its leading advantage, with shipments reaching 5.6 million units and a market share of 27%. OPPO ranks second with a shipment volume of 4 million units, with a market share of 19%. The brand focuses on models priced in the range of $150 to $200, with the A-series products dominating the market. Xiaomi and vivo are evenly matched, each with a shipment volume of 2.5 million units, and Xiaomi‘s ranking has also climbed to fourth place. Realme ranked in the top five with a shipment volume of 2.2 million units and an 11% market share.

    Canalys analyst Chief Le Xuan said: Various brands are hoping that the holiday events from March to April and the launch of new products will stimulate consumer demand for smartphones, but this has not met expectations. Smartphone manufacturers have made inventory adjustments in the past few quarters, preparing to take advantage of the rising consumption during the Ramadan holiday in Indonesia and Malaysia, as well as the election period in Thailand, to drive sales growth. Although their attractiveness has decreased compared to last year, Apple and Samsung have expanded their channel activities, thereby increasing sales by zero Sell channel traffic and increase brand awareness. Other Chinese manufacturers hope to follow the successful strategy of OPPO and gradually increase the price range to enhance their brand image

     Chief Le Yuan added: Due to the cautious nature of consumers in second tier cities in the region, which has suppressed the demand for high-end products, the penetration rate of smartphones has been hindered in the context of macroeconomic downturn. Developing countries such as Indonesia and the Philippines, which are price sensitive and have larger market sizes, are facing this situation, with their market sizes shrinking by 21% and 17% respectively year-on-year. Although Thailand‘s shipment volume has decreased by 13%, the recent lack of cooperation among operators The buying wave has driven an increase in promotional activities and 5G bundled sales, benefiting Apple and Samsung. At the same time, Vietnam‘s shipment volume decreased by 40% year-on-year. Due to the global economic situation, the growth of local electronic manufacturing industry has slowed down, and consumer spending has decreased, resulting in a significant decrease in the inventory level of old phones

    Canolys analyst Sheng Win Chow said: Canalys holds a conservative attitude towards the development prospects of the Southeast Asian market in 2023. Due to the unfavorable business environment, the region is expected to face demand challenges in the short term. In addition, the extended replacement cycle and slow growth in smartphone adoption will further lead to channel inventory expansion and financial challenges. Canalys predicts that the situation in 2024 will be different, with shipments in the region increasing by 7% compared to 2023 . However, Southeast Asia remains in a favorable position in the global economic recovery and can benefit from it. The region has received a lot of investment, preparing for a rebound in demand in the future. Due to the continuous expansion of the key consumer groups in the region - the middle class and young population - Southeast Asia remains a promising market for smartphone manufacturers. In addition, the rapid development of digital payments and installment payments has also made the prices of high-end devices more affordable to the public