CHART: A look at Southeast Asia’s smartphone market in Q1 2025

For the first time in over a year, Southeast Asia’s smartphone market is shrinking—and the timing couldn’t be more telling. After five straight quarters of growth, the industry posted a 3% dip in shipments in Q1 2025.

It's a small slip on paper, but behind the overall downturn is a growing storm of economic pressure, cautious consumers, and overstretched inventory that stifled growth, per a Canalys report.

Vendors had aggressively front-loaded shipments in Q4 2024 to capitalise on the festive season and brace for macroeconomic turbulence. But as inflation took hold and discretionary spending tightened, particularly in the lower-end and mid-tier brackets, consumer demand faltered.

That tension showed up in the numbers. Average selling prices rose 5% year-on-year, the highest since 2023, as brands leaned towards premium product launches.

In the middle of this market reset, Samsung reclaimed the top spot with 4.3 million shipments and a 19% market share. It was supported by strong demand for its mid-range 5G A-series and deeper telco partnerships.

Xiaomi wasn’t far behind. It grew shipments by 4% year-on-year to reach 4.0 million units and a 17% share—its highest ranking since mid-2019. The rest of the top five didn’t fare as well: TRANSSION (a sharp 20% decline), OPPO, and vivo all saw declines, dragged down by weak demand in the entry-level and mid-range segments.

Meanwhile, regional market dynamics varied sharply. Xiaomi is proving to be the most strategically placed brand in Southeast Asia right now. It posted a consistent top-tier presence across the region, ranking in the top two in all five key markets. It led in Indonesia (the region's largest smartphone market) and Malaysia, and placed second in Vietnam, Thailand, and the Philippines.

Market leader Samsung also stood strongly leading in two regions– Vietnam and Thailand. Meanwhile, Apple made a rare top-three appearance in Vietnam, reflecting growing premium demand there.

Looking ahead, global trade tensions, inflation, and currency swings are adding pressure to an already fragile market. The report noted that rising import costs and higher smartphone prices are expected to weaken demand further, especially in price-sensitive countries.

In response, brands are moving quickly, tightening retail strategies and diversifying production. Vietnam is emerging as a key manufacturing base. Similarly, Malaysia’s semiconductor edge, Indonesia’s battery push, and Thailand’s electronics base are also turning Southeast Asia into more than just a consumer market, it’s becoming a critical part of the global smartphone value chain.

While this is expected to help Southeast Asia’s smartphone market down the line, the region's years of riding on fast growth and booming demand have entered a more complex, high-stakes phase. The easy growth is over. What comes next will favour brands that are faster, leaner, and better positioned to adapt at both regional and local levels.