The smartphone market in Thailand is predicted to bounce back in 2024, following a projected downturn in 2023, primarily driven by the replacement demand from the previous year's unprecedented sales, innovative AI functionalities of new smartphones, and the increase of cost-effective 5G mobile devices on the market. Lead global technology market analyst firm, Canalys, indicates that the AI integration in the devices will drastically transform the smartphone market landscape in 2024.

Canalys analyst, Sheng Win Chow, informed the Bangkok Post that Thailand's smartphone market is forecasted to recover in the first half of 2024. Given the surge in smartphone shipments in 2021, which reported a peak of 20.6 million units, Chow forecasts that the majority of these users will be prepared to buy new devices next year.

Samsung's planned integration of AI features in the upcoming Galaxy S Series models and the influx of affordably priced 5G smartphones, particularly those priced USD 170 or below, contribute significantly to stimulate the demand for new devices.

With over 85% network coverage, Thailand is leading the ASEAN region in 5G adoption, and their commendably lower prices for 5G postpaid and prepaid tariff plans, particularly the affordable prepaid plans, are contributing to expanding the 5G users base. Such benefits make it a highly attractive market for smartphone brands to introduce a broader variety of 5G devices.

Thailand's demographic diversity and large user base enable mobile phone brands to fully invest across various price ranges and target multiple customer segments, from entry-level to premium devices. This capacity sets it apart from other markets like Singapore, known for its smaller population and preference for high-end phones, or markets like Indonesia and the Philippines which have greater populations gravitating towards the lower-end.

According to Chow, the investment level in marketing like billboards in Thailand is strong. The outlook for the Thai smartphone market in 2023 is projected to shrink by 6% from 2022's 17 million units, due to challenging economic conditions. On the matter of smartphone brands competing in Thailand, brands like Transsion and Realme are predicted to experience significant growth by capitalizing on rivals retreating from the entry-level and budget segments.

Increased deployment of AI features on devices could potentially disrupt the future smartphone market as it offers an opportunity for mobile brands to distinguish their products beyond hardware specifications. First-off-the-block is Samsung with its announcement of incorporating AI in the Galaxy S series. The foldable phone category is also one to watch, with Oppo and Samsung making assertive strides that foldable phones will become the key form factor for future flagship devices.