According to analyst firm Canalys, the Southeast Asian smartphone market declined in Q1 2025, marking the end of five consecutive quarters of growth due to economic headwinds.

Canalys reported that the market contracted by 3% year-on-year, with total shipments falling to 22.8 million units in the first quarter of 2025.

Samsung led the market with 4.3 million units shipped, capturing a 19% market share. Xiaomi followed in second place with 4 million units and a 17% share – notably, it was the only vendor in the top four to post growth, recording a 4% year-on-year increase.

Transsion ranked third with 3.3 million units shipped, accounting for 15% of the market. Chinese brands OPPO and vivo followed with 3.2 million units (14%) and 2.7 million units (12%) respectively.

Canalys research manager Le Xuan Chiew noted that vendors built up inventory as a hedge against anticipated macroeconomic risks, while consumer demand was impacted by inflation. This combination led to a 5% year-on-year rise in average selling prices, which Canalys warned is “expected to further dampen consumer demand.”

Le also identified Vietnam as a potential bright spot amid the broader economic challenges.

“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,” said Le.