Cheap smartphones gradually "disappear" in Southeast Asia

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The shipment volume of cheap smartphones (under 150 USD) in Q2/2026 in Southeast Asia decreased sharply compared to the same period last year.

Counterpoint Research has just announced a noteworthy market research on the smartphone market in Southeast Asia in Q2/2026.

Accordingly, shipments decreased by 15% compared to the same period in 2025, marking the largest decrease since the first quarter of 2023. In this quarter, demand for cheap segment products sharply decreased due to increased costs forcing original equipment manufacturers (OEMs) to withdraw from low-profit product models. At the same time, high-end equipment grew strongly again, driven by higher consumer demand and the focus of suppliers on profits.

Expert Shilpi Jain said that the cheap smartphone segment (under 150 USD) was most heavily affected, with shipments falling by 38% compared to the same period last year. The segment from 250-499 USD decreased by 11% due to OEMs increasing prices and reducing the presence of cheap products.

In the opposite direction, customers in Vietnam, Indonesia or Thailand, Malaysia are increasingly interested in high-end smartphone lines, integrating many AI (artificial intelligence) features. Accordingly, the 500-699 USD segment grew by 74% in the period from April to June this year compared to the same period last year and the over 700 USD segment increased by 18%, continuing to promote the market towards devices with higher prices.

Samsung continues to maintain its leading position in the Southeast Asian smartphone market with 24% market share, and shipments increased by 6% compared to the same period last year. This growth is supported by improved product supply, relatively modest price increases, strong promotions in the middle of the year and stable demand in the high-end phone segment.

Samsung's biggest competitor, Apple, accounts for 9% market share, ranking 4th in the region. Their iPhone shipments only decreased by 2% compared to the same period last year. Ranked above Apple are Xiaomi (18%), Oppo (17%) and Transsion (15%). However, the shipments of all 3 companies also decreased compared to the same period last year.

Honor is the company with the strongest growth, with shipments increasing by 61% compared to the same period last year despite the pressure of continuous memory costs.

This growth is supported by the continued expansion of the retail network, improved product supply capacity and more effective product portfolio management in key Southeast Asian markets. In the second quarter of this year, Honor launched the Honor 600 series product line with many improvements in AI, cameras, belonging to the high-end segment and was strongly welcomed.

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