According to the latest research from Counterpoint’s Market Monitor service, Indonesian smartphone shipments grew 25% annually and 5% sequentially during Q2 2018 driven by the festive offers and new launches around Ramadan month. With over 30 brands competing in the market, Chinese brands now capture over half of the total smartphone market while the share of local brands declined to single digits for the first time. Commenting on the results, Associate Director, Tarun Pathak said, “The overall tech ecosystem in Indonesia is more robust as compared to a year ago. With smartphone users all set to cross the 100 million mark this year, it presents an opportunity for the players in the mobile ecosystem to tap the growing demand of digital consumption. Users have now started migrating from entry level smartphones to mid-tier smartphones which has increased the replacement rate over the past few quarters.” Research Analyst, Parv Sharma commenting on the competitive landscape said, “Samsung continues to lead the market due to performance of J7 series and product refresh during the  end of the quarter. Samsung still enjoys a strong retail network in the country though the competition is catching up fast. Xiaomi (+1400%) & Vivo (+267%) were the fastest growing brands during the quarter. Xiaomi surpassed OPPO during the quarter to become the second largest brand in Indonesia. The growth of Xiaomi was due to the strong performance of the Redmi series across both online and offline channels. Indonesia is now an important market for Xiaomi as it continues to expand its distribution reach in the nation.” Market Summary:

• Indonesia smartphone shipments grew 25% annually and 5% sequentially during Q2 2018. While promotions and offers during the festive Ramadan month contributed to the growth, the strong double digit growth is also due to the the fact,that during Q2 last year, the market was adapting to the local manufacturing terms and conditions (TKDN)
• Samsung led the smartphone segment with a market share of 25% followed closely by Xiaomi and OPPO.
• Xiaomi became the second largest brand in Indonesia. Xiaomi now has a broader portfolio as compared to a year ago. Moreover, it has managed to reduce the gap of popular global products and their launch in Indonesia which helped it to lead the sub $150 segment.
• OPPO had strong offline promotions around its F series which drove volumes. Additionally, its A83 and A71 did well.
• The market share of Chinese brands reached 53% (the highest ever) in Indonesia with local brands at 9%.
• LTE capable smartphones contributed to 90% of total smartphone shipments during Q2 2018. Indonesian operators have done well in increasing the LTE coverage ahead of the 2018 Asian Games.
• Mid end segment has the largest number devices being launched with brands attracting users through offers like trade-ins, data bundling and higher memory capacity options for similar SKUs.
• Sub $150 segment contributed to over half of the market. $100-$150 segment was the fastest growing price band.
• Apple had less than 1% market share in country. Apple has recently expanded its reach in the country, but new iPhones are still expensive in the region.
• Qualcomm led the SoC segment with 39% market share followed by MediaTek and Samsung with 30% and 20% share respectively.
• Other brands which did well during the quarter were vivo, Asus and Huawei.

Exhibit 1: Indonesia Smartphone Shipments Market Share in Q2 2018

Source: Counterpoint Research Market Monitor Q2 2018

The comprehensive and in-depth Q2 2018 Market Monitor is available for subscribing clients. Please feel free to contact us at press(at)counterpointresearch.com for further questions regarding our latest research or insights. The Market Monitor research is based on sell-in (shipments) estimates based on vendor’s IR results, vendor polling triangulated with sell-through (sales), supply chain checks and secondary research. Analyst Contacts: Tarun Pathak +91 997-121-3665 [email protected] Parv Sharma +91 974-259-6030 [email protected] Follow Counterpoint Research press(at)counterpointresearch.com