While 2022 saw a 13% YoY decline in smartphone shipments in Southeast Asia, budget-priced phone sales rose 28% QoQ in Q4.
As for brand performance, Apple and Samsung sustained 2021 volumes while greater than $600 premium segment phones grew 23% YoY. However, in the fourth quarter, as inventory levels and shipments rose for Chinese brands like vivo, realme, and Xiaomi, the entry-level phone segment saw a big bump in sales at the end of the year. Infinix and Transsion are popular in the Philippines (which seems to have had less impact from macroeconomic pressures), Indonesia, and Thailand (where the transition to 5G is spurring growth).
The economic picture, softness in demand, and supply chain issues are universal problems. Regional growth opportunities are going to drive business opportunism for companies that can reach into new markets. There seems to be room at the top and at the bottom of pricing tiers, the former squeezed on volumes and growth, and the latter squeezed on margins and profits.
