Chinese smartphone brands, especially Oppo, Vivo, Xiaomi, Realme and Huawei, shipped a total of 19.0 million units in Q2 2019, to take a 62% share in the Southeast Asia region, a big jump from 50% in the same quarter last year, according to the latest report from Canalys.
“Southeast Asia is popular for new brands, as the chances of success are higher than in other parts of the world,” says Canalys Analyst Matthew Xie. “With 75% of shipments consisting of sub-US$200 models, the market here is focused on mid-to-low-end smartphones, a segment where brand loyalty is low. Given the vast population, development of online and logistical infrastructure, and increasing local production capability, vendors are investing heavily to secure business resources and consumer awareness.”
Given the myriad brand choices and ample supply of devices, most markets in Southeast Asia recorded sequential increases in Q2. This was also helped by aggressive promotions from the top vendors to take advantage of a weakened Huawei.
While people are likely to buy even more phones during the rest of the year, thanks to a range of festive promotions, it is expected that vendors will face an uncertain time as Samsung threatens to erode their market shares with its new devices.