• The smartphone market in Indonesia declined 9% QoQ in Q2 2020.
• Vivo led the market with 21.2% share, followed by OPPO (20.6%) and Samsung (19.6%).
• Xiaomi led the online market with 40% share.

New Delhi, Hong Kong, Seoul, London, Beijing, San Diego, Buenos Aires – September 4, 2020

Indonesia smartphone market sales declined 20% YoY and 9% QoQ in Q2 2020 mainly due to the adverse economic effect of the COVID-19 pandemic, according to the latest research by Counterpoint Research Model Sales Tracker. Top five smartphone brands — Vivo, OPPO, Samsung, Xiaomi and Realme — accounted for more than 90% of the total smartphone sales during this quarter.

Vivo continues to lead the smartphone market with 21.2% share in Q2 2020, followed by OPPO (20.6%) and Samsung (19.6%). Leaving behind local brands, Chinese players continue to dominate the Indonesian smartphone market, grabbing four slots in the top five brands with their aggressive marketing strategies.

The major catalyst in Vivo’s success is its aggressive pricing strategy and big demand from the low mid-end segment and Tier 2. Vivo’s smartphone models such as the Y12, Y91C and Y50 were among the top contributors to its market share. Vivo is strong in the offline segment. OPPO is not much behind Vivo, having stimulated the market with its A series smartphones.

Exhibit 1: Indonesia Smartphone Market Share by Sales Q2 2020

Source: Counterpoint Research Channel Share Tracker June 2020

Commenting on the online market, Research Associate Tanvi Sharma said: “Online smartphone sales in Indonesia grew 70% YoY and 7% QoQ during Q2 2020. The total online smartphone market share reached an all-time high of 19% during Q2 2020, compared to 9% in Q2 2019. This spurt was mainly due to the COVID-19-triggered need for social distancing and innovative marketing strategies such as shopping through WhatsApp. E-commerce platform Lazada topped the chart with 50% share, leaving behind Shopee (24%) and Tokopedia (15%).”

Sharma added: “This online shopping trend is expected to continue to grow as e-commerce platforms are going big on promotional activities. Recently, Shopee launched a three-week shopping event called 9.9 Super Shopping Day, offering free delivery and late-night discounts.”

Commenting on brand performance, Associate Director Tarun Pathak said: “Xiaomi emerged as the leader in online channel sales with 40% share. Its Redmi 8A was the top model for online channel sales, followed by Realme 5i and Redmi Note 8 series. Realme took second place in online channel sales with 33% share. Samsung took third place with 10% market share, its Galaxy A10s, A10 and A50 being among the top contributors.”

Exhibit 2: Indonesia Top E-commerce players by Smartphone Sales Q2 2020

Source: Counterpoint Research Channel Share Tracker June 2020

Pathak added: “The e-commerce industry has seen a big growth in these three months, thanks to COVID-19. E-wallets such as Ovo and GoPay are becoming more common as digital payments replace cash. Also, discounts and promotional offers are particularly important to lure consumers to e-commerce platforms.”

Background:

Counterpoint Technology Market Research is a global research firm specializing in Technology products in the TMT industry. It services major technology firms and financial firms with a mix of monthly reports, customized projects and detailed analysis of the mobile and technology markets. Its key analysts are experts in the industry with an average tenure of 13 years in the high-tech industry.

Analyst Contacts:

Tanvi Sharma

Tarun Pathak

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