According to the latest research from Counterpoint Research’s Market Monitor service for Q2 2015 (Apr-June), overall mobile phone market (smartphones + feature phones) in Indonesia increased 1% Y/Y but declined 5% Q/Q. However the smartphone market registered a Y/Y increase of 30% and QoQ increase of 7%.

Vendor Highlights

• The overall Indonesia handset market remained flat annually but the smartphone segment grew a healthy 30% annually.
• Smartphones now account for slightly under 58% of the total handset shipments in the country during 2Q 2015.
• Samsungled the smartphone segment during the quarter with 24.2% marketshare. However, its market share has plummeted due to weaker in mid-tier smartphone segment due to rise of Asus, Vivo, Oppo and Xiaomi.
• Evercosssurpassed Samsung to be the top handset vendor in the quarter capturing 18.2% market share. It is also the second largest smartphone brand in the country capturing 14.3% market share. Most of Evercoss’s growth came from the entry level smartphones during the quarter, though presence in higher profit high- to premium tier remains weak.
• Microsoft on account of strong feature phone sales is still among top three brands in the overall market with a market share of 9.6%; feature phone models such as 105,130 and 225 were among the best sellers. However its smartphone shipments remained flat sequentially
• Advan surpasses Smartfren to be third largest smartphone player in the country by capturing 11% market share due to strong demand for its smartphones in the entry level segment with best sellers like S3FD,S35F, S4A Plus and others. It also captured fifth place for the first time in overall handset market rankings by capturing 7.3% market share. The marketing campaigns like sponsoring FC Barcelona and promotional strategies on products helped it to grab share from competitors.
• Smartfren, another local (operator) brand, captured fourth spot in the smartphone segment with a market share of 10.4% during the quarter but the highlight of the quarter for the operator was launch of its Cyanogen based Andromax Q and LTE devices which have started off on a positive note.
• Asus surpassed Oppo to find its position among the top five smartphone players in the country by capturing 8.8% market share during the quarter. The refreshed Zenfone series is expected to provide momentum further in coming quarters.

Market Highlights

• LTE ecosystem in Indonesia started picking-up during the quarter. The LTE device shipments increased by 300% sequentially and crossed 1 million units for the first time in a single quarter.
• During the quarter Indonesia government has also officially released the regulation on Local contents sourcing for LTE devices (TDD+FDD) in the country thereby making it standpoint clear to the device vendors.
• E-commerce contribution in smartphones sales increased during the quarter but is still low compared to that of India and now contributing close to 8% of all the smartphone shipments during the quarter
• The share of Chinese Handset vendors in the smartphone segment continues to increase while capturing 16% of the total smartphone market. Most of the share was captured by brands like Oppo, Lenovo, Xiaomi with Vivo registering the highest sequential growth.
• Key smaller brands to watch out in coming quarters are Infocus, Wiko, Infinix, Meizu among others which can grab market share from local and other international players with aggressive pricing and attractive device lineup.

The comprehensive and in-depth Q2 2015 Market Monitor for Indonesia and other countries globally is available for subscribing clients. Please feel free to reach out to us at analyst@counterpointresearch.com for further questions regarding our in-depth latest research, insights or press enquiries.

The Market Monitor research is based on sell-in (shipments) estimates based on vendor’s quarterly results, vendor-polling triangulated with sell-through (sales), supply chain checks and secondary research.