Analyst Le Xuan Chiew of Canalys claims that consumer morale and spending have rebounded as a result of moderating inflationary pressures, which have been bolstered by government support and momentum from year-end 2023 sales events in the region.

He noted trends like affordable 5G, AI integration, ecosystem development, and channel optimization. “To capitalize on this market resurgence, smartphone manufacturers, which adopted conservative strategies in the last six months, are now deploying aggressive tactics to gain market dominance,” he said in the release.

Thanks to the successful launch of its premium S24 series, which included longer battery life and new AI capabilities, Samsung was able to reclaim its top market share position in the region in January.

However, Chinese rivals are increasing their market focus, gaining ground, and releasing new phone models at competitive costs. Comparatively speaking, Transsion, a relatively new brand to the market, had growth of 190% year over year, while Xiaomi, the second-largest phone brand in that region based on shipments in January, saw growth of 128%.

“There are good reasons to expect increased investments in the region due to the growing middle class and the influx of young people into the workforce,” Cheiw stated.