South Korean mobile phone producer Samsung has reclaimed its pole position in the overall handset market in Indonesia in the third quarter from local producer Evercoss, with 19 percent market share, when compared to 16 percent in the previous quarter of the same year, the latest report of Counterpoint Technology Market Research revealed.
Yet the biggest takeaway from the latest numbers is that Indonesia’s smartphone market dropped 7 per cent in Q3, its first ever year-on-year decline. The overall mobile phone market fell even farther – slipping 18 per cent year-on-year.
“The key reasons for the market decline during the quarter were domestic brands clearing off their built-up inventory thus realizing a weaker sell-in, international brands realigning their product roadmap to the local sourcing rules laid down by Indonesia Trade Ministry and a slightly weaker consumer demand,” Counterpoint Research Director, Tom Kang said.
“However, we see this as a temporary blip in the Indonesia’s smartphone growth story as the market is undergoing correction and brands are aligning to regulatory framework. Thus the Indonesia market is estimated to bounce back during the ongoing holiday quarter,” he added.
In the smartphone market segment, Samsung’s shares increased to 27.1 percent from 24.2 percent in previous quarter, driven by the healthy contribution of its mid-tier portfolio led by J-series.
Evercross market share in overall handset declined to 14.4% in third quarter of 2015 from 18.5 percent in previous month, while in the smartphone segment, it captured 12.9 per cent market share, down from 14.3% in previous quarter.
The shares are 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.
Evercoss’s shipments declined sequentially as the local king was in the process of refreshing its product portfolio and thus looking to scale up beyond the entry level devices moving into the holiday quarter, the Counterpoint said.
The report also said that Microsoft, on account of strong feature phone sales during the quarter remained among the top three mobile phone brands with a market share of 12% feature phone models such as 105,215 and 130 were among the best sellers. However, its smartphone shipments declined sequentially.
Meanwhile, Smartfren, another local brand and operator, captured fourth spot in the overall handset market and climbed to third spot in smartphone segment with a market share of 6 percent and 10 percent share respectively. The operator continues to ramp up its LTE offerings with five devices in its portfolio.
The Advan brand was the fourth largest smartphone player in the country during the quarter capturing 8 percent share due to strong demand for its smartphone in the entry level segment with best sellers like S35H,S4P, S35 and others. It also captured fifth place in overall handset market rankings by capturing 6 per cent market share.
The overall mobile phone market (smartphone + feature phones) in Indonesia declined 18 per cent year-on-year and the smartphone segment shrunk by 7 percent year-on-year for the first time since the advent of smartphone in the country.
Taiwan’s handset maker Asus captured fifth spot among smartphone players in the country by capturing 7 per cent market share during the quarter. The refreshed Zenfone series remained popular with Zenfone C among the top three bestselling models during the quarter.
Senior Analyst, Tarun Pathak said: “While most of the operators are currently expanding their 4G network and infrastructure, the demand for 4G smartphones continue to increase. As a result, the 4G handset shipments continue to grow, shipping more than a million units during the quarter in spite of the overall demand weakening”.
He said Indonesia is a preferred market for the major smartphone brands beyond China and India in the APAC region, thus, attracting new entrants every quarter.
“Currently, more than 50 smartphone brands compete in the country, however, ample opportunity beckons for the brands to grow as the overall smartphone penetration is still a third of the total unique mobile phone user base,” Tarun Pathak said.
Another interesting trend is the increasing market share of the Chinese mobile handset vendors in the smartphone segment. The report recorded the combined Chinese handset vendors captured 21 per cent of the total smartphone market in the third quarter as compared to 16 per cent in previous quarter. Most of the share was captured by brands like Oppo, Lenovo, Xiaomi and Vivo the report showed.