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Xiaomi is the best-selling Android smartphone brand in Indonesia, IDC report says

Written by Khamila Mulia Published on     2 mins read

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Overall sales for smartphones grew 49% compared to the same period last year, as they are used for essential activities like home-based learning and electronic payments.

Xiaomi was the best-selling Android smartphone in Indonesia in Q2 2021 with 27% market share, according to a report released by IDC. Oppo trails in second place with 19% market share, followed by Vivo (17%), Samsung (16%), and Realme (11%). Other unspecified brands make up the remaining 10% of market share.

Xiaomi’s popularity is driven by a consistency in expanding its online and offline presence in the country, said Kiranjeet Kaur, senior research manager at IDC Asia Pacific. “Xiaomi also had the highest shipments in the online channel in Q2, making up almost two-fifths of the total smartphone’s online shipment,” Kaur told KrASIA.

The brand’s offline strategy involves around 30 authorized Mi Stores, some of which are in tier-2 and tier-3 cities like Aceh and Papua. It partners with many small retailers across the country too. “Due to more complicated logistical and geographical challenges, offline is still more dominant in Indonesia,” said Kaur. She added that Xiaomi’s low-end devices, such as the Redmi 9A and 9C, are also cheaper than comparable handsets developed by other brands. “This, combined with their channel strategy and huge fan following, are the reasons behind Xiaomi’s popularity in Indonesia.”

Meanwhile, Samsung shipments declined in Q2 as it faced supply constraints for its popular Galaxy A series. Samsung has been losing market share in Indonesia since the second quarter of 2020 as Chinese competitors have a wider variety of affordable products. “These competitors are also expanding their distribution network aggressively. This is supported by various marketing activities,” Kaur said.

Total smartphone shipments in Indonesia in the second quarter grew 49% compared to the same period last year, reaching 10.6 million units. Smartphones are now used for essential activities like home-based learning, entertainment, as well as e-commerce and digital payments, Kaur said. The average selling price dropped to USD 172 from Q1’s USD 178 as many consumers are now more conscious of their spending and switching to low-cost smartphones.

However, Indonesian customers are also keen to try the newest 5G devices. Since the country’s leading network provider Telkomsel launched its first 5G service in May, the shipment of 5G smartphones has doubled quarter-on-quarter, crossing 500,000 units in Q2, with an average selling price of USD 575, IDC’s report said.

Even so, Kaur expects overall smartphone shipments to slow down in the third quarter due to the resurgence of COVID-19 cases and the current lockdown measures in several provinces, like Java and Bali. “While demand remains high, we may see lower supply from manufacturers and distribution channels, especially since most offline retail shops are shut down during the lockdowns,” she said.

Read this: Oppo absorbs OnePlus for more phones with more similarities

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