During the quarter, entry‑level demand collapsed as rising costs forced OEMs to retreat from low‑margin models. At the same time, premium devices gained momentum, driven by stronger consumer appetite and vendors focus on profitability.

Commenting on the market dynamics, Senior Analyst Shilpi Jain said, “The Q2 2026 slowdown reflected a combination of cost pressures and softer demand across SEA. The market was also affected by the timing of festive-season purchases, which shifted some demand into the first quarter. These factors created a more challenging operating environment for vendors, with growth increasingly dependent on stronger channel execution, promotional activity and demand from more resilient consumers. The entry-level segment was the hardest hit, with sub-$150 shipments down 38% YoY and the $250-$499 segment falling 11% as OEMs raised prices and reduced entry-level exposure. In contrast, premium segments remained strong, with the $500-$699 band growing 74% and the above-$700 segment rising 18%, further driving the market toward higher-priced devices.”

SEA Smartphone Shipments Market Share, Q2 2026 vs Q2 2025

Note: OPPO includes Oneplus and realme; Xiaomi includes Redmi and Poco;Transsion includes Infinix,Tecno, & iTel.

Key Brand Highlights in Q2 2026

Samsung maintained its leadership in the SEA smartphone market with a 24% share, with shipments rising 6% YoY. Growth was supported by improved product availability, relatively modest price increases, strong mid-year promotional activity, and sustained demand in the flagship segment.

Chinese brands such as Xiaomi, OPPO and Transsion faced shipment declines as memory inflation continued to pressure lower-priced devices. In response, several vendors increasingly shifted their portfolios toward the mid-range and premium segments, prioritizing profitability and higher-value models over entry-level volumes.

Apple remained among the top five smartphone brands in SEA with a 9% share, a position it has held since Q1 2026. The brand’s shipments declined by only around 2% YoY, helping it gain market share. Its relatively resilient performance was supported by a more localized strategy, improved product accessibility, and stronger ecosystem integration, which helped sustain premium demand.

HONOR continued its strong momentum, with shipments growing 61% YoY despite ongoing memory cost pressures. Growth was supported by continued retail expansion, improving product availability, and stronger portfolio management across key SEA markets.

Commenting on market outlook, Jain said, “The SEA smartphone market is expected to remain under pressure in H2 2026, partly due to a higher comparison base from last year, when several brands frontloaded shipments ahead of anticipated market and supply-side uncertainties. Ongoing component cost pressures, particularly in memory, are likely to continue constraining pricing flexibility, while cautious consumer spending could further limit replacement demand. As a result, vendors are expected to remain selective with a greater focus on inventory discipline, mid-to-premium segments and profitability rather than volume growth.”

About Counterpoint Research

Counterpoint Research is a global market research firm specializing in products across the technology ecosystem. We advise a diverse range of clients – from smartphone OEMs to chipmakers and channel players to Big Tech – through our offices located in the world's major innovation hubs, manufacturing clusters and commercial centers. Our analyst team, led by seasoned experts, engages with stakeholders across the enterprise – from the C-suite to professionals in strategy, analyst relations (AR), market intelligence (MI), business intelligence (BI), product and marketing – to deliver services spanning market data, industry thought leadership and consulting. Our core areas of coverage include AI, Automotive, Consumer Electronics, Displays, eSIM, IoT, Location Platforms, Macroeconomics, Manufacturing, Networks and Infrastructure, Semiconductors, Smartphones and Wearables. Visit our Insights page to explore our publicly available market data, insights and thought leadership, and to understand our focus, meet our analysts and start a conversation.

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