Market Monitor Q1 2015 : Handset and Smartphones Indonesia

According to the latest research from Counterpoint Research’s Market Monitor service for Q1 2015 (Jan-Mar), overall mobile phone market (smartphones + feature phones) in Indonesia increased 2% Y/Y but declined 8% Q/Q. However the smartphone market registered a Y/Y increase of 55% but declined by 11% Q/Q. Domestic manufacturing now accounts for 35% of the total handset market during 1Q 2015 and is estimated to go up in coming quarters due to recent regulatory and policy announcements.

Market Summary:

  • The Indonesia handset and smartphone markets grew by 2% and 55% respectively Y-o-Y.
  • Smartphones now account for slightly over half of the total handset shipments in the country during 1Q 2015 .
  • Samsung led the overall handset market (smartphones + feature phones) and the smartphone market during the quarter with market shares of 21.2% and 32.9% respectively.
  • Evercoss continues to be the second largest brand in the overall handset market and smartphone market with market shares of 18.2% and 13.1% respectively.
  • Microsoft on account of strong feature phone sales is still among top three brands in the overall market with a market share of 10.9%; feature phone models including 105,108 and 225 were among the top sellers.
  • Smartfren, another local (operator) brand, captured third spot in the smartphone segment primarily due to continued strong demand for models like the AndromaxC3, C2.
  • However the operator is expected to shift its CDMA portfolio towards LTE portfolio and its recent launch of Cyanogen based device (Andromax Q) is a step in the same direction.
  • Oppo continue to hold on its position among top 5 smartphone brands with a market share of 6.1%.Going forward vendor is expected to ramp up its domestic manufacturing in the country as demand for its products is remains strong.
  • Advan becomes the fourth largest smartphone player in the country due to strong demand for its smartphones in the $50-$75 price band with best sellers like S4M,S4A Plus,S4K and others
  • The Android One program of Google debuted in Indonesia during 1Q 2015 with the launches from three local vendors: Evercoss (OneX), Mito (Impact A10) and Nexian (Journey 1). Much like India, in Indonesia Android One got off to a slow start with first quarter sales falling below expectations.
  • On the other hand the LTE ecosystem in Indonesia started picking-up during the quarter. The LTE device shipments increased by 150% Q/Q with global brands like Samsung, Apple and others contributing almost 60% of the shipments.
  • Apart from a couple of Local players like Polytron,TSM are now offering locally manufactured LTE devices and the recent draft regulation regarding LTE devices might see some global brands tying up with local OEM’s for the manufacturing of their LTE devices.
  • The share of Chinese Handset vendors in the smartphone segment continues to increase while capturing 16% of the total smartphone market share compared to 12% during 4Q 2014. Much of the share was captured by brands like Oppo, Lenovo, Xiaomi and others.
  • Key Chinese and new entrants to watch for during 2Q 2015 are Oppo, Xiaomi, ASUS and Lenovo among others which can grab market share from local and other international players.

Indonesia 1Q 2015

Source: Counterpoint Research Market Monitor Q1 2015 Report

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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.