Source: Counterpoint Research Monthly Indonesia Channel Share Tracker, June 2021

    Research Analyst Paula Ruth said, “The strong growth in smartphone shipments in Q2 was driven by an early recovery in consumer spending, thanks to the pent-up demand and Eid al-Fitr celebrations, combined with faster adoption of smartphones. We also observed smartphone brands in Indonesia becoming more active in the online channel to support health protocols related to the pandemic. According to Counterpoint data, the online channel accounted for around 19% of the smartphone market in Q2 2021, higher than the pre-pandemic level of 13% in Q1 2020. During Q2, the country’s top telecommunication operators Telkomsel and Indosat Ooredoo started to launch 5G commercial services, gradually expanding the coverage. We think the consumers’ preference for 5G phones would grow with the launch of 5G services or in anticipation of getting such connectivity. Based on our Indonesia Channel Share Tracker, 5G smartphones’ share in total smartphone shipments rose from 4% in Q1 2021 to 7% in Q2 2021. Going forward, we are slightly cautious on the smartphone market performance in Q3, given the COVID-19 resurgence around mid-June. But we see potentially more signs of recovery afterward. Current daily infections have already dropped significantly compared to the peak in July. However, the ongoing component shortages continue to pose a risk.” Commenting on Xiaomi’s leadership in Q2, Senior Analyst Glen Cardoza said, “Xiaomi’s success in the quarter was due to its popularity for ‘good value for money’ products, strong online presence, relatively lean inventory management, and global component shortages, which forced a competitor like Samsung to prioritize certain markets. The consumers’ preference in Indonesia has shifted more toward affordable smartphones and online purchases due to the pandemic. These preferences align well with Xiaomi’s strong points. Xiaomi not only led the overall smartphone shipments in Indonesia but also topped in online sales, grabbing around 30% share during the quarter.”   Background Counterpoint Technology Market Research is a global research firm specializing in products in the TMT (technology, media, and telecom) industry. It services major technology and financial firms with a mix of monthly reports, customized projects and detailed analyses of the mobile and technology markets. Its key analysts are seasoned experts in the high-tech industry.   Counterpoint Research press(at)counterpointresearch.com   DISCLAIMER: Counterpoint Technology Market Research All Rights Reserved. Reproduction of this publication in any form without prior written permission is forbidden. The information contained herein has been obtained from sources believed to be reliable. However, we disclaim all warranties as to the accuracy, completeness of this report. Counterpoint shall have no liability for errors, omissions or inadequacies in the information contained and any direct/indirect damages. All opinions and estimates herein are subject to change without notice.   Feel free to contact us at press(at)counterpointresearch.com for questions regarding our latest research and insights, or for press enquiries.