Thailand’s smartphone market to recover in 2024 boosted by AI and 5G

The smartphone market in Thailand is projected to recover in 2024, following an expected slump this year. The rebound is attributed to artificial intelligence (AI) features on smartphones, increased availability of affordable 5G devices, and replacement demand from 2021, according to Canalys, a global tech market analyst firm.

Canalys analyst Sheng Win Chow indicated that the AI features on these devices will significantly influence the smartphone market in 2024. In 2021, smartphone shipments in Thailand soared to 20.6 million units, and Chow suggests many of these consumers will be ready to upgrade their devices next year.

The market stimulus is also expected from Samsung’s planned introduction of AI features on its Galaxy S Series model and a surge in affordable 5G smartphones priced at 6,000 baht (US$170) or less. Thailand, leading the ASEAN region in 5G adoption with over 85% network coverage and considerably lower prices for 5G tariff plans, presents a lucrative market for mobile phone vendors to introduce more 5G smartphone variants.

Thailand’s diverse demographic and sizeable population allow vendors to target various price points and product segments, unlike other markets such as Singapore and Indonesia. The country’s retail landscape is also more advanced than other ASEAN nations, emphasising the need for unique and engaging shopper experiences, reported Bangkok Post.

The projected drop in Thailand’s smartphone market in 2023 is by 6% from 17 million units in 2022, due to challenging economic conditions. However, brands like Transsion and Realme are expected to capitalise on competitors shifting away from entry-level and low-price segments with their affordable model portfolio.

On the other hand, Samsung and Oppo are focusing on higher price segments and premium product offerings, with less reliance on distributors. Xiaomi and Vivo share the ambition to grow in the premium segment but are also defending their shares against Transsion and Realme in the low-end segment.

Samsung leads charge

Canalys identified on-device AI as a potential game changer in the future, as it allows smartphone brands to differentiate their products beyond hardware specification features. The first to announce AI on its Galaxy S Series model is Samsung, setting the stage for other manufacturers.

Foldable mobile phones are another area to watch, with Oppo and Samsung betting on this being the main form factor for flagship devices in the future. It remains to be seen why Apple has not entered the foldable space and what different perspectives they have compared to their competitors.