Smartphone market 2024 highlights

Following a challenging 2023, Vietnam’s smartphone market rebounded. Consumers spent more on new phones, with notable growth seen in budget segment sales. The return of Chinese brands to the premium segment intensified competition, providing consumers with more options at competitive prices.

Growth driven by the 2G phase-out

Retailers estimate a 20% increase in smartphone sales based on reports for up to the end of November, largely driven by demand for 4G feature phones and entry-level smartphones. The government had initially planned to shut down 2G networks in September but deferred it to mid-October. Retailers began preparations early in the year with promotions and inventory adjustments.

A 4G smartphone model priced under VND2 million ( US$78.6). Photo by VnExpress/Tuan Hung

By the second quarter sales of 4G feature phones and budget smartphones soared, and they peaked in September as 2G and 3G phone owners sought replacements before the deadline. Counterpoint Research reported that the share of smartphones priced at under US$200 hit 51% in the third quarter, the highest since Q1 2022.

Brands such as Tecno, Inoi, Nubia, and ZTE capitalized on this trend, as did established names like the Samsung Galaxy M15, Oppo A38 and Xiaomi Redmi Note 13.

Demand for low-priced devices slowed toward year end.

Consumers opt for higher priced smartphones

Xiaomi 14 Ultra, priced at over VND30 million (US$1,179). Photo by VnExpress/Tuan Hung

Without the jump in 4G feature phones, smartphone sales fell by 1% from 2023 while retailers’ total revenues rose by 12% indicating consumers’ willingness to spend more on their devices.

Retail chain CellphoneS reported a 10-15% increase in the average selling price of smartphones in 2024.

The mid-range and near-premium segments remained the most competitive, attracting nearly all major brands. Samsung’s Galaxy A series saw a resurgence, while Oppo and Xiaomi reported strong sales in mid-range and budget categories.

Foldable phones face mixed reactions

Galaxy Z Fold6 offers Galaxy AI assistant. Photo by VnExpress/Tuan Hung

Foldable smartphones faced challenges this year, including declining sales and limited software updates, but new players entered the market.

Data from retailers shows that Samsung maintained its dominance in the foldable segment but experienced a 30% decline in sales compared to 2023.

The Z Fold6 performed well but could not offset the disappointing sales of the Z Flip6. Both are now priced around VND10 million (US$393) lower than their launch prices in July.

Chinese brands shake up premium market

The Find X8 Pro marks the return of Oppo's Find X series after a two-year hiatus. Photo by VnExpress/Tuan Hung

While Samsung and Apple continued to lead the premium segment, Chinese brands introduced fresh competition in the smartphone market. Advanced photography features have become a key selling point for brands like Huawei, Vivo, Xiaomi, and Oppo.

In May Xiaomi brought its flagship Mi 14 Ultra to Vietnam, its first local launch of the Ultra lineup. Oppo reintroduced its Find X series in November after a two-year hiatus. Both phones are priced above VND30 million.

Honor also entered the premium market with its Magic V3, the world’s thinnest foldable smartphone.

Huawei and Vivo gained attention with their photography-focused smartphones; however, they are primarily available in Vietnam through grey-market imports.