Omdia: Cost pressure intensifies, smartphone shipments in Southeast Asia fell by 1% year-on-year in the third quarter.

The latest research from Omdia shows that in the third quarter of 2025, the smartphone market in Southeast Asia declined by 1% year-on-year, with shipments reaching 25.6 million units, marking the third consecutive quarter of year-on-year decline. Overall, the smartphone market in Southeast Asia is still facing pressure, with total shipments slightly decreasing year-on-year. Thanks to its launch of more high-end product combinations in high average price markets such as Thailand, Vietnam, and Malaysia, Samsung leads the region with shipments of 4.6 million units and a market share of 18%. This strategy effectively countered the growth of competitors in more price-sensitive markets such as Indonesia and the Philippines. Transsion closely follows Samsung with shipments of 4.6 million units and a market share of 18%, maintaining a slight year-on-year growth and holding onto its market position. Xiaomi ranks third with shipments of 4.3 million units and a market share of 17%. Its growth is driven by the POCO series, with shipments of this series increasing significantly after the launch of new entry-level models, significantly driving its overall growth. OPPO ranks fourth with shipments of 3.8 million units and a market share of 15%, with a significant decline in shipments due to weak demand and channel adjustments. Vivo ranks fifth with shipments of 2.9 million units and a market share of 11%, with its performance mainly driven by the new Y series models, complementing its core mid-range V series. Omdia research manager Zhou Lexuan stated: "The volatility of entry-level smartphone shipments is increasing, making management more challenging, but it is still a key factor in market share rankings." In terms of brand strategy, OPPO and Vivo focus more on value rather than shipments, while Honor and Xiaomi expand their brand penetration by increasing shipments. He added: "After experiencing a sluggish market in the first half of 2025, manufacturers entered the second half with healthier inventory levels and are expected to adopt more aggressive strategies, including launching new products in the third quarter. The increase in material costs driven by the rise in memory and storage prices will significantly pressure lower-priced devices. Given that the Southeast Asian market is highly price-sensitive, with over 60% of smartphones priced below $200, this impact is particularly evident. To cope with rising costs, manufacturers need to strike a balance between maintaining competitive prices and adjusting selling prices, reducing hardware costs, or cutting marketing expenses to protect profit margins." Omdia senior analyst Zhou Shengyong stated: "Transsion leads in shipments in Indonesia and the Philippines, with its high cost-performance ratio Infinix and TECNO models performing well in these highly price-sensitive markets. However, the increase in memory and storage costs may affect its ability to maintain aggressive pricing and threaten its leading position in shipments. In Thailand and Vietnam, Samsung continues to maintain a significant lead in its traditional strong markets, demonstrating resilience in an increasingly competitive environment. The early-release A17 and A07 series by Samsung played a key role in the third quarter of 2025, helping it rapidly respond to the demand in the entry-level and mid-range markets. Meanwhile, in Malaysia, Xiaomi claimed the top spot in the market with the strong release of Redmi 15 in September, including the early release of the 5G version, showcasing its ability to accelerate the popularization of 5G devices in the mass market."