Hong Kong, Boston, Toronto, London, New Delhi, Beijing, Taipei, Seoul – September 15, 2021

Smartphone shipments in Indonesia recorded solid growth of 28% YoY and 22% QoQ in Q2 2021, according to Counterpoint Research’s Monthly Indonesia Channel Share Tracker. This growth was driven by the Eid al-Fitr festive offers during the first half of the quarter, and new launches. A lower base in the same quarter last year, when the COVID-19 pandemic first hit the country, also helped.

Among the smartphone players in Indonesia, Xiaomi reached its highest ever share (26%) of total shipments to become the market leader for the first time. The brand’s top models in the country include the Redmi 9C, Redmi 9A and POCO M3, popular due to features related to battery, storage and camera. vivo took the second spot with a 21% share, driven by the Y12s, Y1s and Y20s models. OPPO stood third with a 20% share as its A54, A15 and Reno 5 5G models performed well. Samsung and realme achieved fourth and fifth ranks respectively.

Indonesia Smartphone Shipments Share by Brand, Q2 2021 vs Q2 2020

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.

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