Indonesia Smartphone Market Declines For The First Time in Q3 2015

“Indonesia smartphone market declined 7% annually. Chinese brands now capture one-fifth of the total smartphone shipments”

According to the latest research from Counterpoint Research’s Market Monitor service for Q3 2015 (July-Sept), overall mobile phone market (smartphones + feature phones) in Indonesia declined 18% Y/Y and the smartphone segment shrunk by 7% Y/Y for the first time since the advent of smartphones in the country


Market Summary:

Vendor Highlights

  • Both the overall handset and smartphone segments in Indonesia underwent annual and sequential decline as local brands cleared off inventory coupled with a weaker consumer demand
  • Three in Five mobile handsets shipped during the quarter were smartphones during 3Q 2015.
  • Samsung reclaimed its pole position in the overall handset market from Evercoss with 19% market share in the overall handset and 27% in the smartphone segment. The growth in smartphone was due to healthy contribution of its mid-tier portfolio led by J-series.
  • Evercoss captured second spot in both overall and smartphone segment with a market share of 14% and 13% Evercoss’s shipments declined sequentially as the local king was in the process of refreshing its product portfolio and thus looking to scale up beyond the entry level devices moving into the holiday quarter
  • Microsoft on account of strong feature phone sales during the quarter remained among the top three mobile phone brands with a market share of 12%; feature phone models such as 105,215 and 130 were among the best sellers. However, its smartphone shipments declined sequentially
  • Smartfren, another local (operator) brand, captured fourth spot in the overall handset market and climbed to third spot in smartphone segment with a market share of 6% and 10% resp. The operator continues to ramp up its LTE offerings with five devices in its portfolio.
  • Advan was the fourth largest smartphone player in the country during the quarter capturing 8% share due to strong demand for its smartphones in the entry level segment with best sellers like S35H,S4P, S35 and others. It also captured fifth place in overall handset market rankings by capturing 6% market share.
  • Asus captured fifth spot among smartphone players in the country by capturing 7% market share during the quarter. The refreshed Zenfone series remained popular with Zenfone C among the top 3 bestselling models during the quarter.

Market Highlights

  • LTE ecosystem in Indonesia continue to grow with shipments crossing more than a million units for the second successive quarter.
  • Indonesia is a preferred market for the major smartphone brands beyond China & India in the APAC region, thus, attracting new entrants every quarter. Currently, more than 50 smartphone brands compete in the country, however, ample opportunity beckons for the brands to grow as the overall smartphone penetration is still a third of the total unique mobile phone user base.
  • Indonesia government is expected to clear its move on local sourcing by announcing the criteria’s supporting 30% local souring.
  • E-commerce contribution in smartphones sales increased during the quarter but is still low compared to that of India and now contributing close to 10% of all the smartphone shipments during the quarter. Lazada remains the number one e-commerce channel in the country.
  • The share of Chinese mobile handset vendors in the smartphone segment continues to increase capturing 21% of the total smartphone market as compared to 16% in previous quarter. Most of the share was captured by brands like Oppo, Lenovo, Xiaomi and Vivo.
  • Key smaller brands to watch out in coming quarters are Infocus, Wiko, Infinix, Coolpad and Meizu among others which can grab market share from local and other international players with aggressive pricing and attractive device lineup.

Indonesia Q3 2015 Monitor

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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.