Southeast Asia’s smartphone shipments declined 15% in Q2 2026, with rising prices and a shift towards premium devices reshaping the market landscape amid broader economic pressures.
Southeast Asia’s smartphone market is moving deeper into a value-led cycle, with shipments falling 15% year on year in the second quarter of 2026, according to Counterpoint Research. That was the sharpest contraction in the region since the first quarter of 2023 and reflected a difficult combination of higher component costs, softer consumer spending and a rotation away from low-end handsets.
The weakest point of the market was the entry-level category. Counterpoint’s senior analyst Shilpi Jain said sub-$150 phones fell 38% year on year, as original equipment manufacturers pulled back from thin-margin models and raised prices to offset cost inflation. The $250-$499 segment also declined, while premium tiers continued to expand: sales of phones priced at $500-$699 rose 74%, and devices above $700 increased 18%. That pattern shows a market increasingly shaped by affordability pressure at the bottom and stronger demand for higher-value products at the top.
Samsung kept the regional lead with a 24% share, helped by better availability, limited price increases, mid-year promotions and steady demand for flagship devices. Apple remained in the top five with a 9% share, holding that position since the first quarter of 2026. Its shipments were down only about 2% year on year, which allowed it to edge up its share. Counterpoint said that performance reflected a more localised approach, improved access to products and stronger ecosystem ties. HONOR also stood out, with shipments rising 61% as it expanded retail coverage and improved portfolio management across key markets.
Several Chinese brands, including Xiaomi, OPPO and Transsion, faced sharper pressure as memory inflation squeezed lower-priced devices. The broader backdrop is consistent with other industry data. Omdia said Southeast Asia’s market fell 9% year on year in the first quarter of 2026, while average selling prices reached a record $349, up 19% year on year, indicating that vendors were already prioritising margin protection over volume. Counterpoint’s global research also shows that memory shortages and surging prices have pushed the industry towards premium devices and intensified strain on brands with heavy exposure to entry-level and mid-tier models.
The outlook for the second half of 2026 remains cautious. Jain said vendors are likely to stay selective, focusing on inventory control, mid-to-premium segments and profitability rather than unit growth. Counterpoint expects component costs, especially memory, to keep constraining pricing flexibility, while cautious consumers may continue to delay upgrades. That would reinforce a market in which premium demand is holding up, but broader shipment recovery looks limited.
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