Demand for smartphones in seven Southeast Asian countries continued to soar over the last year, with sales up 44 per cent to nearly 120 million units as low-price models from China enter the market.

Smartphone sales (including phablets) in the nations – Singapore, Malaysia, Thailand, Indonesia, Philippines, Vietnam and Cambodia – increased 24 per cent by value to $16.4 billion from a year ago, GfK said.

GfK data showed shipments in Indonesia rose 70 per cent while unit sales in Vietnam were up 56 per cent. In Thailand smartphone revenue was up 31 per cent as shipments rose 44 per cent.

Gerard Tan, an account director at GfK Asia, said a key driver fuelling the growth is the introduction of more low-end models by Chinese manufacturers, making smartphones more affordable and taking competition to an even more intense level.

Tan said Indonesia is the only market where homegrown brands have continued to gain market share. Local brands now have a 16 per cent share by volume and 7 per cent share by value.

At the same time, Chinese smartphone brands are gaining traction in Indonesia, Malaysia and Vietnam, where they have more than a 10 per cent share in each market.

International brands dominate the region’s smartphone market, Tan said, but Chinese brands are gaining a significant presence. “Major international brands are losing share to the Chinese brands, which are selling in the $50 to $200 range.”

GfK said the average selling price for an internationally branded smartphone is $253 while a Chinese branded model sells for $159 — 58 per cent lower. More than 345 Chinese branded smartphones are sold across the region.

Tan said competition will continue to intensify as Chinese manufacturers step up their activities in Singapore, the Philippines and Thailand.