Smartphone shipments fall again in Southeast Asia

Analyst firm Canalys reported that smartphone shipments in Southeast Asia fell 15% year-on-year in the second quarter to 20.9 million units, the lowest total since 2014; macroeconomic conditions continue to affect consumer confidence.

In a statement, Canalys said low shipments have led to a buildup of old stocks, a stifling of new initiatives and inventory from smartphone makers, and a lackluster holiday season. This was also the sixth consecutive quarter of year-on-year decline.

“Brands maintained a cautious approach during the quarter and focused on strengthening the channel’s positioning for long-term equity sustainability,” said Canalys analyst Le Xuan Chiew.

Samsung was the largest provider of shipments in Southeast Asia with 4.2 million units, with a 20% market share, despite a year-on-year drop of 26%. Chinese supplier Oppo was in second place with 3.4 million shipped and a 16% market share.

Xiaomi and Transsion shipped around 2.9 million units, occupying 14% of the market each, through key device launches and market expansion, respectively. Realme reclaimed fifth place with 2.6 million units (12% market share).

“The market is expected to gain momentum in the second half of 2023 as channel inventory returns to healthier levels,” Canalys analyst Sheng Win Chow said.

“Intensified incentive programs and new high-end launches should boost retail sales from the third quarter of 2023. The long-term outlook for Southeast Asia is intact and Canalys expects mid-digit growth in 2024.

“Expansion of the online channel will greatly contribute to future growth as investments from e-commerce operators improve infrastructure, and timely payment and logistics allow e-retailers to scale more efficiently.

“Increased marketing spending will stimulate demand by allowing more aggressive discounts. In addition, the growing disposable income in the region due to an expanding middle class and a young population entering the labor force are compelling reasons to expect an improved outlook”.