Malaysia Smartphone Market Insights: Xiaomi Dominates, Chinese Brands Dominate

Malaysia's smartphone market witnessed robust growth in February 2024, with shipments increasing by 10% year-over-year (YoY) to reach 687,000 units. Xiaomi emerged as the leader with a 19% market share, followed by vivo, Apple, Transsion, and Samsung

Malaysia's smartphone market witnessed robust growth in February 2024, with shipments increasing by 10% year-over-year (YoY) to reach 687,000 units. Xiaomi emerged as the leader with a 19% market share, followed by vivo, Apple, Transsion, and Samsung. Canalys forecasts the Malaysian smartphone market to grow by 9.5% YoY in 2024, reaching 9.8 million units.

Market Overview

Malaysia's smartphone market is on a growth trajectory, driven by increasing 5G penetration and consumer demand for value-for-money devices. Canalys projects a five-year compound annual growth rate (CAGR) of 5.8%, with the market reaching 10.5 million units by 2026.

Vendor Rankings

Xiaomi commanded 19% of Malaysia's smartphone market share. Its February shipments surged by 56% YoY, fueled by the launch of budget-friendly models like the Redmi A3 and Redmi 13C. vivo secured the second position with a 13% market share and shipments of 92,000 units. Apple ranked third with shipments of 86,000 units, despite a decline in market share.

Key Trends

• Rising 5G Penetration: The expanding availability of 5G networks is driving the demand for 5G-enabled smartphones, as evidenced by the success of vivo's Y100 5G.

• Value-for-Money Devices: There is a growing demand from consumers for affordable devices with essential features, creating opportunities for brands like Redmi.

• Rise of Chinese Brands: Chinese smartphone brands such as Honor, OPPO, and realme are gaining ground in the Malaysian market, capturing market share with their value-driven and innovative offerings.

Major Vendor Analysis

• Xiaomi: Xiaomi maintained its dominance in Malaysia, capturing consumers with its wide range of value-for-money models. The company focuses on building a strong and loyal fan base.

• Vivo: Vivo has solidified its position by expanding its presence both online and offline and introducing compelling mid-range models.

• Samsung: Samsung continues to hold a strong position with its Galaxy S series flagship phones and A series mid-range devices. Its growth in value terms indicates solid relationships with distributors and retailers.

• Transsion: Transsion has found success in Malaysia's entry-level smartphone market by catering to mass-market consumers. Its devices are known for their low prices and solid build quality.

• Apple: Apple maintains high brand awareness and loyalty with its flagship iPhone 14 series. However, its growth in shipments reflects a softening demand for premium-priced devices in the market.

Malaysia's smartphone market is poised for continued growth as consumers continue upgrading to newer devices with enhanced capabilities. The rise in 5G penetration and the persistent demand for value-for-money devices will fuel market expansion. Chinese brands are expected to further increase their share, challenging traditional market leaders.