SEA smartphone market faces first decline since 2024, Samsung reclaims lead and Xiaomi surges 

Canalys’ (now part of Omdia) latest research reveals that Southeast Asia’s smartphone market declined by 3% to 22.8 million shipments in Q1 2025, marking its first contraction after five consecutive quarters of annual growth. Samsung reclaimed the top position with a 19% market share, shipping 4.3 million units. Xiaomi was the only vendor among the top five to post year-on-year growth, increasing shipments by 4% to reach 4.0 million units and capturing a 17% market share—its highest ranking since its peak in Q2 2019, before the pandemic. TRANSSION secured third place with a 15% market share despite a 20% decline due to new launches brought earlier in 2024. OPPO (excluding OnePlus) ranked fourth with a 14% share, though its shipments dropped 16% due to challenges in the entry-level segment. vivo rounded out the top five with a 12% market share, supported by a strong 34% year-on-year growth in its V-series compared to the previous generation. 

“Southeast Asia’s smartphone market started 2025 on a slow note, posting a 3% decline,” said Canalys (now part of Omdia) Research Manager Le Xuan Chiew. “Vendors entered the year with elevated inventory levels after front-loading shipments during the festive season in Q4 2024 to hedge against anticipated macroeconomic risks. Inflationary pressures have weakened consumer demand, particularly in the entry-level and mid-range segments of the market. This led to a 5% year-on-year increase in average selling prices (ASPs), reaching the highest level since 2023, partly due to a wave of high-end product launches in Q4 2024 that significantly strained the wallet share of major retailers. Further rises are expected through 2025.”  

“In this climate, vendors need to stay agile in their product portfolio strategies to quickly adapt to shifting market dynamics,” added Chiew. “Xiaomi’s rise to the second position exemplifies this flexibility. With limited reliance on large key retailers, the brand strategically accelerated the launch of its Note series to maintain volume momentum during the January and February period—a move that proved successful in sustaining growth despite broader market pressures. Furthermore, HONOR’s expanded product portfolio allowed it to target new price segments across a broader range of channels, reducing the risk of overreliance on any single segment. As a result, it achieved an 88% year-on-year growth, reaching 893,000 shipments—its highest quarterly performance to date.” 

“As uncertainties rise, it is vital for smartphone vendors to hedge their risks through channel diversification,” said Canalys (now part of Omdia) Senior Analyst Sheng Win Chow. “This approach reduces exposure to volatility in the entry-level segment and supports more prudent inventory management. Samsung has traditionally led in the 5G-capable device segment and its focus on delivering improved value and deepening telco partnerships has paid off. Its 5G-capable A-series grew 47% year-on-year, despite ongoing challenges in the ultra-low-end market. This growth supports Samsung’s broader strategy to premiumize its portfolio, moving away from the entry-level segment. Meanwhile, Xiaomi has made significant strides by expanding into operator and direct-to-consumer (D2C) online channels while boosting marketing efforts around the launch of the Xiaomi 15 series. These initiatives have not only strengthened Xiaomi’s presence in the premium segment but also helped drive retail traffic. For example, in Malaysia, Xiaomi expanded its telco offerings of the affordable Redmi 5G series, pushing the contribution of its 5G-capable devices to an all-time high of 39%. To ensure long-term profitability in the premium segment, brands need to maintain a wider channel diversity to support a multifaceted approach.” 

“The Southeast Asian smartphone market is navigating an increasingly challenging environment,” stated Chiew. “Global trade tensions, currency fluctuations and domestic issues such as political uncertainty and inflation are creating significant headwinds. Costlier imports, compounded by rising smartphone ASP, are expected to further dampen consumer demand, particularly in price-sensitive markets. This presents an opportunity for brands like Apple and Samsung to accelerate production diversification strategies to reduce reliance on Chinese manufacturing.”  

“Vietnam is a market to watch in 2025, emerging as a key beneficiary of the regional supply chain shift,” added Chiew. “Its stable governance, improving infrastructure and proximity to component suppliers make it an attractive destination for long-term investment in smartphone production. Beyond economic advantages, Vietnam’s push for 5G presents a valuable opportunity for brands to expand their 5G portfolios and tap into the growing middle class. Meanwhile, other Southeast Asian countries such as Malaysia, Indonesia and Thailand are also enhancing their roles in the smartphone value chain, leveraging strengths such as Malaysia’s semiconductor industry, Indonesia’s battery ecosystem and Thailand’s industrial electronics infrastructure. This could potentially help to improve the region’s standing in the smartphone value chain, to maintain price stability of smartphones and to navigate global uncertainties.” 

For more information, please contact:

Le Xuan Chiew: lexuan_chiew@canalys.com 
Sheng Win Chow: shengwin_chow@canalys.com 

About Smartphone Analysis

Canalys’ (now part of Omdia) worldwide Smartphone Analysis service provides a comprehensive country-level view of shipment estimates far in advance of our competitors. We provide quarterly market share data, timely historical data tracking, detailed analysis of storage, processors, memory, cameras and many other specs. We combine detailed worldwide statistics for all categories with our unique data on shipments via tier-one and tier-two channels. The service also provides a unique view of end-user types. At the same time, we deliver regular analysis to give insights into the data, including the assumptions behind our forecast outlooks. 

About Canalys

Canalys, now part of Omdia, is a leading global technology market analyst firm with a distinct channel focus. We strive to guide clients on the future of the technology industry and to think beyond the business models of the past. We’ve delivered market analysis and custom solutions to technology vendors worldwide for over 25 years. Our research covers emerging, enterprise, mobile and smart technologies. Understanding channels is at the heart of everything we do. Our insightful reports, data and forecasts inform our clients’ strategies, while the Canalys Forums and Candefero online community give the channel feedback opportunities. We stake our reputation on the quality of our data, our innovative use of technology and our high level of customer service.

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