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In the second quarter, a major Chinese technology corporation reclaimed its position as the leading smartphone shipper in Southeast Asia, a feat it hadn’t achieved in four years. During the three months ending June 30, the company dispatched 4.7 million devices across the region, reflecting an 8 percent increase compared to the previous year, based on recent data from Canalys. Following behind were Transsion from China and Samsung from South Korea, with respective shipments of 4.5 million and 4.3 million units.
The company’s second-quarter growth was largely fueled by enhanced sales channels directly targeting consumers and telecom operators, which laid a strong groundwork for expanding its sub-brands. Notably, shipments of Poco, a budget-friendly smartphone brand aimed at international markets, more than doubled. Meanwhile, the high-end Xiaomi 15 series experienced a 54 percent increase in shipments, according to Canalys analyst Le Xuan.
This upward trend contrasted with the overall decline in Southeast Asia’s smartphone market, which shrank by 1 percent to 25 million units during the same period. This downturn was primarily due to uncertainties stemming from new US tariffs, the report noted.
Le Xuan pointed out that ongoing US-China trade tensions are causing ripple effects across the industry as manufacturers shift supply chains away from China to meet U.S. shipment demands. This realignment affects production schedules and stock distribution from manufacturing hubs like China and Vietnam to both Southeast Asia and the United States, disrupting inventory planning and limiting product availability.
Currency fluctuations, especially a weaker US dollar, are also affecting local purchasing power and retail prices. As a result, vendors are compelled to modify their pricing strategies and promotional efforts to stay competitive in the market.
Moreover, standing out beyond just price remains an ongoing challenge for all brands competing in the mass-market segment, according to Sheng Win Chow, a senior analyst at Canalys. Both Xiaomi and Transsion hold strong positions in the budget smartphone sector, leveraging competitive pricing and aggressive retail incentives. Chow highlighted that competition is particularly intense at the entry-level tier, prompting some brands to move upmarket in search of success.
An example of this shift toward premium offerings is Honor, a brand that spun off from the Chinese telecom giant Huawei Technologies five years ago. Its shipments in Southeast Asia surged by 121 percent in the second quarter, crossing the one million units mark for the first time, Canalys reported.
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