Chinese smartphone maker Honor plans to expand in Indonesia to tap into the growing appetite for premium handsets in South-East Asia’s largest economy and most populous country.
Shenzhen-based Honor, which was spun off in 2020 as an independent company by Huawei Technologies, expects to launch more than 30 products that range from smartphones to wearables, as well as open over 10 “experience” stores across the Indonesian archipelago this year, according to Justin Li, president of Honor South Pacific.
“In future economic cycles, we are very confident in the potential of the Indonesian market – both in terms of the overall market and the mid-premium (smartphone) segment – considering the country is the largest economy in South-East Asia with the biggest and youngest population,” Li said in a media briefing on Friday.
Honor is expected to launch its initial batch of products in the first quarter. This will comprise mid-premium handsets, including foldable smartphones, as well as laptop computers and tablets.
“In Indonesia, we will be highly focused on mid- to high-end products, and we will pursue long-term investments in the market,” Li said.
Honor’s international push reflects how Chinese handset makers are ramping up efforts to reach more overseas consumers, as competition in mainland China – the world’s largest smartphone market – continues to intensify with a resurgent Huawei, which has sharply focused on the domestic market since being blacklisted by the US.
In Indonesia, Honor is expected to compete with other major Android handset brands including Samsung Electronics, Oppo, Vivo and Xiaomi.
Oppo’s foray into Indonesia comes amid Apple’s troubles with the government. Jakarta banned the sale of the new iPhone 16 series in October, citing Apple’s failure to meet local content requirements that mandate that a percentage of components or production processes originate within the country. Last month, Apple pledged a US$1bil (RM4.50bil) investment in Indonesia after the government rejected the US tech giant’s proposed US$100mil (RM450.74mil) investment, up from its initial offer of US$10mil (RM45.07mil).
While Apple’s predicament did not influence Honor’s push into Indonesia, Li said the company has learned valuable lessons on what a smartphone newcomer can expect in the market. “It is important to make a thorough preparation and comply with local requirements to ensure there are no issues in business continuity,” he said.
Honor is working with a local manufacturer to produce its handsets for the Indonesian market in compliance with the country’s domestic component level policy, according to Li. “We will continue to optimise our local production capabilities based on business development and market demand, especially government requirements,” he said.
Smartphone shipments in Indonesia during the September quarter last year rose 4 per cent from the same period in 2023 on the back of “steady economic growth and pent-up demand”, according to a report published in November by Counterpoint Research.
The country’s top smartphone vendors in the September quarter were Xiaomi, Oppo, Vivo, Samsung and Realme, formerly a sub-brand of Oppo.
Li said Honor is banking on its experience in other South-East Asian markets, including Malaysia and Singapore, to gain ground in Indonesia’s mid-premium smartphone segment, where Samsung and Apple currently dominate.
In Malaysia, 53% of Honor’s foldable smartphone users were previously Samsung and Apple users, according to Li. – South China Morning Post