Southeast Asia's smartphone market is booming so far this year as China remains sluggish, research says

Smartphone shipments in Southeast Asia continued a resurgence at the start of 2024, contrasting to a lull in other regions, as the promising market for mobile makers continues to attract more brands and investment. 

The top five markets in the region saw 7.26 million smartphone units shipped, marking a significant 20% increase from the same period last year, according to research from technology market analyst firm Canalys published Wednesday. 

The results continue a market rebound that began in the fourth quarter of 2023 when Southeast Asia phone shipments increased year-over-year for the first quarter in almost two years amid a broader post-pandemic industry recovery. 

According to Canalys analyst Le Xuan Chiew, stabilizing inflationary pressures buoyed by government support and momentum from year-end 2023 sales events in the region have seen consumer sentiment and expenditure rebound. 

"To capitalize on this market resurgence, smartphone manufacturers, which adopted conservative strategies in the last six months, are now deploying aggressive tactics to gain market dominance," he said in the release, noting trends such as affordable 5G, AI integration, ecosystem development, and channel optimization.

In January, Samsung regained its top market share spot in the region thanks to the successful launch of its premium S24 series, which offered increased battery life and new AI capabilities. 

But, Chinese competitors are focusing more on the market, gaining ground and offering new phone models at competitive prices. Xiaomi, the second largest phone brand by shipments in January for that region, saw year-on-year growth of 128%, while Transsion, a relative newcomer to the market, saw growth of 190%. 

"The region's increasing