Malaysia's smartphone shipments grew 10% in February 2024 – Canalys

Top five vendors in Malaysia – February highlights:

Market Dynamics

In the entry-level price segment, smartphone vendors are intensifying the price competition, leveraging channel incentives to boost both volume and market share. Core specifications, pricing strategies and channel margins are crucial success factors for devices priced under MYR1,000 (US$200), with 5G capability becoming increasingly relevant up to the price point of MYR1,400 (US$290). Successful models such as vivo’s Y17s and Xiaomi’s Redmi 12 were able to strike the right balance between these factors.

For premium smartphones, creating omnichannel shopping experiences for customers is increasingly important. This requires having a good understanding of the customer journey across online and offline channels to craft a smooth and consistent experience. Samsung does this very well as most of their official online stores give customers the option to pick up their devices at physical store outlets. Much of the media activity for the Galaxy S24 launch was online but it was supported by a large network of branded stores equipped with demo units for customers to test Galaxy AI features like Live Translate.

Market Outlook

Canalys projects a 9.5% year-on-year growth in the Malaysian smartphone market, reaching 9.8 million units in 2024. As retailer profitability diminishes, further consolidation within the channels is anticipated. Telco channels and large organized retailers are poised to gain market share at the expense of smaller independent resellers. Beyond their advantages in infrastructure and financial resources, organized retailers and telcos are better positioned to monitor customer refresh cycles through installment plans, data packages and other sales initiatives.

The proliferation of affordable 5G devices remains a significant growth catalyst, particularly as major telcos exclusively offer 5G devices. Additionally, 5G data access is now bundled into most prepaid data plans at no additional charge. The expanded availability of 5G in the prepaid market is expected to drive demand for affordable 5G devices, extending beyond telcos to the broader open channel. Smartphone vendors will look to partner with Telcos like Maxis, CelecomDigi and Hotlink to bring their affordable 5G portfolio to the masses.

Read the full press release here.

Canalys