Xiaomi Returns to the Top in Southeast Asia After Four Years as Market Growth Stalls

The smartphone market in Southeast Asia is beginning to feel the effects of Trump's tariffs, which have been rattling supply chains like loose bolts in a machine. In Q2 2025, shipments fell 1%, which is hardly a collapse but rather a stumble that demonstrates how even little changes in trade policy can upset the region's equilibrium.

Between tariffs reshuffling supply chains, weak currencies squeezing wallets, and jittery buyers holding back, the region’s market isn't collapsing; it's more of a wobble, like someone trying to keep their balance on a shaky floor.

Market Performance

Southeast Asia shipped 25 million smartphones in Q2 2025, according to Canalys. It’s a small slip, but notable after several quarters of recovery. Although Singapore and Vietnam saw a growth in the demand of 5G devices because of the compelling features in the Samsung Galaxy A06 5G and A16 5G phones.

Average selling prices nudged upward, showing buyers are fewer but spending a little more. That mix of tariffs, tight wallets, and a tilt toward pricier models frames the vendor shakeups that followed.

Xiaomi’s Comeback and TRANSSION’s Rise

After four years away from the top, Xiaomi finally reclaimed its crown, shipping 4.7 million units and grabbing a 19% market share. It was because of two things, one, a double play of its ever-reliable Redmi series, and a smarter distribution strategy that extended its reach across the region. The real kicker is that Xiaomi wasn’t just fighting on price anymore. Its POCO brand shipments more than doubled, and the Xiaomi 15 series saw a 54% lift, big wins for a company often tagged as “budget-first.”

Close behind was TRANSSION, a brand that’s been steadily reshaping what people expect from entry-level phones. Its 17% growth in shipments this quarter wasn’t down to flashy flagship devices but to nailing the basics, cheap, reliable phones that actually land in the right channels. In a market where tariffs and inventory constraints can make even availability a competitive edge, TRANSSION’s execution stood out.

Samsung, meanwhile, slipped into third with 17% share. On paper, it was a decline, but there’s a deeper story. Samsung made significant investments in its 5G models, such as the Galaxy A06 5G, which gained popularity in Singapore and Vietnam. Its approach of diversifying into enterprise and B2B channels is also offering it resiliency where others are vulnerable, even when volumes decreased.

Winners, Losers, and a Premium Twist

Not every brand had a good quarter. OPPO’s shipments fell nearly 20%, losing ground in the cutthroat entry-level segment. Vivo struggled too, down 21% overall, though its mid-range V-series quietly tripled its share of shipments compared to last year. That kind of shift shows where vivo’s head is at: fewer low-margin phones, more focus on profitable mid-range devices.

HONOR, on the other hand, might be the quarter’s dark horse. Its shipments soared 121% year on year, passing the million-unit mark for the first time. Fueling that momentum was a sharp move upmarket, with models like the X9c and 400 series pulling in buyers willing to spend more. HONOR is pursuing higher ASPs and succeeding, while others are engaged in price battles at the bottom.

The Factor of TikTok

Beyond the figures, TikTok Shop is a recent development that is reshaping the competitive environment. Previously disregarded as a marketplace for low-cost, drop-shipped devices, TikTok is now aggressively collaborating with brands, providing subsidies, and increasing smartphone live sales. For price-sensitive brands like Xiaomi and Infinix, it’s a platform to clear stock and reach Gen Z consumers where they shop.

TikTok’s aggressive move could nudge the balance in favour of companies wise enough to adapt, given that Shopee and Lazada are no longer the lone runners. And in a market already squeezed by tariffs and weak currencies, a new sales channel with heavy subsidy backing is exactly the kind of lifeline vendors need.