Counterpoint: Smartphone shipments in five major Southeast Asian markets fell 13% year-on-year in the first quarter of 2023

• In the first quarter of 2023, smartphone shipments in Southeast Asia's five major markets fell 13% year-on-year.
• During the same period, Apple's shipments grew 18% year-on-year.
• Infinix achieved strong growth in the Southeast Asian market, with shipments increasing 41% year-on-year.
• Although mid-to-high-end (US$201 to US$600, approximately RMB 1,400 to RMB 4,200) models were the most affected, shipments of mobile phones priced above US$600 (approximately RMB 4,200) increased by 4%.

Source: Counterpoint Research Southeast Asia Monthly Smartphone Tracker

All major Southeast Asian countries are emerging from the geopolitical haze of last year, but they still face some inflationary effects. For example, at the beginning of this year, inflation in the Philippines was high, but operators were still actively engaged in 5G R&D and cooperation with technology companies. With foreign investment in large economies such as Indonesia and Malaysia again, the industry has returned to its previous level of development. Cooperation is also taking place in the financial services sector. For example, OPPO has cooperated with banks in Indonesia to provide banking services, while AIS , a leading operator in Thailand, has cooperated with Bangkok Bank to provide digital platform financial services. But consumers have not really felt the improvement in the economy. Most people are delaying the purchase of smartphones.

Southeast Asia smartphone shipment market share

Source: Counterpoint Research Southeast Asia Monthly Smartphone Tracker

Note: OPPO includes OnePlus

Apple 's iPhone is growing in Vietnam. In the first quarter of 2023 , there was strong demand for the iPhone 13 and 14 series. iPhone shipments also grew in Indonesia. Overall, iPhone shipments grew 18% year-on-year in the first quarter of 2023 .

Infinix is ​​the official smartphone partner of the Mobile Legends Pro League in the Philippines. Infinix continues to enhance its image as a gaming brand in the region. Overall, while Infinix 's sales are not as high as those of the top brands, it continues to grow in the region. The brand grew 41% in the first quarter of 2023 .

At the beginning of this year, some brands were favored by the market, and from the perspective of price range, in the first quarter of 2023 , the price range targeting two consumer groups has increased its market share. Despite the overall decline in sales, smartphones priced below US$ 200 (approximately RMB 1,400 ) still grew by 4% year-on-year. As shipments of entry-level models have been low, shipments grew in the first quarter of 2023 after the suppressed demand was released . However, not all countries have seen a surge in demand for low-end smartphones. Mobile phone brands in Vietnam are still seeking to drive growth in low-end smartphone sales. Low-income families in the Philippines are suffering from high taxes and inflation, which limits their purchasing power for low-end smartphones. High-end ( US$ 600 (approximately RMB 4,200 ) and above) smartphone shipments continued to rise, with a year-on-year growth of 4% . Mid-to-high-end ( US$ 201 to US$ 600 , approximately RMB 1,400 to RMB 4,200 ) smartphone shipments were the most affected across the region.

Analyst Views

Glen Cardoza, senior analyst at Counterpoint Research, said: " At this stage, different types of consumers in Southeast Asia have different consumption behaviors. The purchasing power of low-end smartphone buyers is recovering, but it has not yet fully recovered. Mid-range and high-end smartphone buyers have become more cautious in their consumption and have postponed the replacement of their phones, while high-end smartphone buyers have not been affected by the economic situation. These consumers choose to go out and buy S series, foldable screen phones and iPhones . As 5G becomes more and more normalized, operators have launched creative smartphone solutions to meet various smartphone needs. In the coming months, consumer confidence is expected to improve as governments work to insulate their economies from global macro issues. "

The Vietnamese government is working to commercialize 5G in the country this year . Completing this move sooner will push manufacturing and consumer adoption to the next level. While the Malaysian government and industry are still working on 5G commercialization and its terms, consumers have already bought 5G smartphones.

With the growth of tourism in Southeast Asian countries at the beginning of the year, tourism business and revenue are expected to expand this year. Countries such as Thailand are also working to fully utilize smartphones and develop sustainable eco-tourism programs. For the public, all these developments are likely to become normal and are expected to drive consumer confidence to improve in the coming quarters.

* Major countries/markets in Southeast Asia include Indonesia, Thailand, the Philippines, Vietnam and Malaysia.