It is “now or never” for Chinese smartphones to expand their market

China’s main smartphone brands, after dominating the low -cost segment worldwide, are hurrying to enter the premium market for growth.

In Southeast Asia, Apple and Samsung together represent over 90% of the smartphone market over $ 600, according to data from the Canalys Market Intelligence Company. However, “brands like Xiaomi, Vivo, Oppo and Transion dominate the lowest price segments,” says Sheng Win Chow, Canalys smartphone analyst.

“Affordable and competitive prices” are helping Chinese brands penetrating emerging markets-not only in Southeast Asia, but also in Africa and Latin America, Will Wong observes, senior research manager of the IDC customer device in Asia-Pific.

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But he warns that after being able to accumulate market share in more affordable segments, “it is now or never for Chinese brands to aim in the premium segment.”

“The global smartphone market has entered a ripe phase, which should record only a long -term low -term growth,” says Wong. This means that Chinese brands will need to grow based on the sale of better smartphones, rather than selling more smartphones.

And Southeast Asia has a good opportunity for these accessible brands to penetrate a premium market that has long been the Apple (AAPL3) and Samsung playground. Both Wong and Chow point out that the growing economy of the region means a class of rising consumers, eager to update their devices.

Entering the premium segment

Last week, Oppo, a Chinese smartphone manufacturer, launched its latest folding smartphone at an event at the Marina Bay Sands casino in Singapore.

Find N5, priced at 2,499 Singapore dollars ($ 1,870), is clearly a premium product. The phone is a competitor in terms of resources and quality compared to Samsung’s folding Z6 phone, released in October. For example, OPPO boasted during its launch event that its find N5 was thinner when folded and also offered better battery capacity.

OPPO is already the third most popular smartphone brand in Singapore, says Billy Zhang, president of marketing, sales and international services. Singapore consumers, although in a small number, have a high level of income available and are open to trying new premium products, he adds.

In addition to Singapore, OPPO is also one of the main brands in Philippines, Thailand and Indonesia, according to IDC. This makes Southeast Asia an “fortress” for OPPO, says Wong, and a good trampoline for the brand to enter the premium market.

“OPPO has been one of the main Chinese suppliers who quickly brought the latest and folding AI resources to the market at competitive prices,” he adds.

Other Chinese smartphone manufacturers are also expanding their presence outside their domestic market.

Last week, Huawei marked the international launch of its triple folding smartphone at an event in Kuala Lumpur. The launch in Malaysia was the first consumer electronics event that the company held outside China since the US imposed sanctions in 2019.

Honor, formerly Huawei’s lowest -cost smartphone division, is also focusing on Southeast Asia, planning 10 “experience” stores that will sell medium to high standard products in Indonesia, according to South China Morning Post.

Apple is also trying to expand its consumer base. Last week, the company unveiled the iPhone 16E, the successor of the budget iPhone. However, at $ 599, Apple’s entry phone is still expensive, costing more than $ 150 more than iPhone if. By comparison, Oppo’s Reno 13, one of the brand’s newest tip smartphones, costs $ 597.

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