The smartphone market in Southeast Asia is currently experiencing significant challenges, with a 15% year-on-year decline in shipments during the second quarter of 2026. Despite this downturn, Samsung has managed to grow its presence, further solidifying its position in the region.
Market Overview
According to a recent report by Counterpoint Research, this 15% drop marks the steepest contraction in the Southeast Asian smartphone market since the first quarter of 2023, where shipments had already fallen by 13% year-on-year. Rising component costs, particularly for memory, have been identified as a primary factor contributing to this decline. Additionally, a decrease in consumer spending and a shift in purchasing patterns during the festive season have further complicated the situation.
Factors Behind the Decline
Shilpi Jain, a senior analyst at Counterpoint Research, highlighted that the slowdown in Q2 2026 is a result of a combination of cost pressures and weakened demand across Southeast Asia. Jain noted, "The decline reflects the challenging business environment, making it increasingly difficult for smartphone vendors to navigate market conditions. Growth is now more dependent on distribution channel strength, promotional activities, and demand from consumers who are less affected by economic pressures."
Samsung's Strong Performance
Leading the market, Samsung captured a 24% share in Q2 2026, a notable increase from 19% in the same period last year. The company's smartphone shipments grew by 6% year-on-year, contrasting sharply with the overall market decline. Counterpoint attributed Samsung's robust performance to better product availability, limited price increases, mid-year promotions, and sustained demand for flagship devices.
Other Brands' Performance
Xiaomi follows with an 18% market share, maintaining its position from the previous year, but with an 18% year-on-year decline in shipments. Oppo faced more significant challenges, with its market share dropping from 22% to 17% and shipments plummeting by 34% year-on-year. Transsion holds 15% of the market, despite a 12% decline in shipments, while Apple remains in the top five with a 9% share, up from 8% last year. Apple's iPhone shipments only experienced a minor decline of about 2% year-on-year, significantly less than the market's overall downturn, supported by an expanded offline presence and localized strategies.
Trends in Smartphone Pricing
A notable shift occurred in the budget smartphone segment, with shipments of devices priced under USD 150 dropping by 38% year-on-year, making it the hardest-hit segment. The USD 250-499 category also saw an 11% decline. Conversely, shipments of smartphones priced between USD 500-699 surged by 74%, while devices above USD 700 grew by 18%. Jain remarked, "The entry-level segment has been hit the hardest, with a notable decline in shipments as OEMs increase prices and reduce exposure in this market class. However, demand for premium smartphones remains strong, pushing the Southeast Asian market towards higher-priced devices."
Outlook for the Future
Looking ahead, Counterpoint predicts that the pressures facing the market are likely to continue into the second half of 2026. Rising component costs, particularly for memory, are expected to limit price flexibility, while cautious consumer behavior regarding smartphone upgrades persists. Consequently, vendors are anticipated to adopt a more selective approach, focusing on inventory management, mid-range to premium smartphones, and profitability rather than merely pursuing sales volume.
Source: https://inet.detik.com/consumer/d-8637570/pasar-hp-asia-tenggara-anjlok-15-samsung-makin-berkuasa
