Smartphone shipments to Thailand in the second quarter of 2024 posted only 1% growth year-on-year, compared with 14% growth in Southeast Asia, according to global research firm Canalys.
However, the average selling price in Thailand was much higher during the period, up 9% compared with a 2% decline for Southeast Asia.
Oppo, Samsung, Xiaomi, Apple and Vivo were the top five brands with a 20%, 19%, 15%, 14% and 13% market share in Thailand, respectively.
Phones costing more than US$600 grew by 19% in the quarter, with the top models being the iPhone 15 Pro Max, iPhone 15 Pro and Samsung Galaxy S24 Ultra, according to Canalys analyst Sheng Win Chow.
Strong growth of these flagship devices helps raise Thailand's average selling price, he said.
Mr Chow said he expected the Thai market to post low single-digit growth this year, attributed to gains in affordable 5G devices spurred by increased penetration and adoption by the wider market.
According to Canalys data, Southeast Asian smartphone shipments posted a 14% year-on-year growth in the second quarter of 2024, reaching 23.9 million units.
Samsung saw a slight recovery in the region after seven consecutive quarters of year-on-year decline, shipping 4.4 million units and capturing 18% market share.
Oppo, excluding the OnePlus model, reclaimed second position, shipping 4.2 million units for a market share of 17%.
In third place, Xiaomi's push into the low end saw it close the gap with 4 million units and a market share of 17%.
The Southeast Asian smartphone market's recovery is being driven by a macroeconomic recovery and growing consumer sentiment, said Canalys analyst Le Xuan Chiew.
"The Southeast Asian high-end market has shown growth momentum, driven by vendors' investments in innovative technologies such as artificial intelligence and diversified marketing and channel efforts," said Mr Chiew.
Vendor investment to develop high-end retail channels and experience stores in the region seems to be yielding positive results, with the premium segment seeing growth.
The premium (above $600) segment has grown 18% year-on-year, from 4.3 million units in the first half of 2023 to 5.1 million units in the first half of this year.
"Forex volatility and market price sensitivities are challenges vendors need to closely monitor," said Mr Chow.
"Southeast Asia is increasingly recognised as a key market for smartphone vendors looking to expand their global footprint. The region's governments generally support foreign investment and have effectively managed currency and inflation risks with minimal trade restrictions."
He said there are media reports stating Apple is planning to start manufacturing MacBooks in Thailand, but there is not any specific information on other smartphone manufacturers moving production to Thailand, apart from what has been reported by other news sources.