Samsung dominated the Indonesian smartphone market in the third quarter of this year, riding on a 4 percent annual increase in total shipments of handheld devices to Southeast Asia's biggest economy. (Reuters Photo/Albert Gea)
Samsung Maintains Dominance in Indonesia's Smartphone Market
BY : TABITA DIELA
DECEMBER 16, 2016
Jakarta. South Korean electronics giant Samsung dominated the Indonesian smartphone market in the third quarter of this year, riding on a 4 percent annual increase in total shipments of handheld devices to Southeast Asia's biggest economy, a report by information technology research firm International Data Corporation showed.
The report says negative publicity surrounding the flagship Samsung Galaxy Note 7's propensity to explode had relatively little impact on brand perception in Indonesia.
"Indonesians use smartphones for entertainment purposes, such as social messaging, video streaming, gaming, as well as browsing. Hence, there is demand for phones with larger screen sizes," IDC senior market analyst for client devices Reza Haryo said in a note on Friday (16/12).
Samsung's Galaxy J7, which features a 5.5-inch screen, 13-megapixel camera, 2 gigabytes of RAM and a 3,300-milliampere hour (mAh) battery, dominates the local market.
In second place was the OPPO F1s, followed by the Asus Zenfone Selfie – also with a 5.5-inch screen.
Chinese manufacturer OPPO Electronics is based in Dongguan, Guangdong, while ASUSTeK Computer is a Taiwanese multinational electronics company headquartered in Taipei.
The IDC found that Samsung's consistent marketing campaigns in retail shops allowed vendors to increase shipments despite slowing demand.
The IDC expects the Indonesian market to expand significantly at the end of this year due to an improving economy, even though smartphone shipments dropped 7 percent in the third quarter compared to the previous quarter, which included the Idul Fitri holiday.
The IDC expects the smartphone market to remain positive next year following more support from the market due to the government's local-content regulations.
"Depending on the effectiveness of incentives provided by the government, more component manufacturers could move to Indonesia," Reza said. "This means that vendors would need to be prepared to have end-to-end manufacturing in Indonesia instead of just assembly."