Huawei’s Honor gears up for smartphone sales in Indonesia
Huawei’s spinoff company, Honor, is set to launch smartphone sales in Indonesia by the end of March. This move makes Honor the latest Chinese company to enter the Indonesian market, which has prohibited the sale of Apple’s iPhone 16 due to local production requirements.
In Indonesia, there is a mandate that 40% of smartphone components must be domestically sourced for devices sold in the country. This regulation has hindered Apple from offering its latest phone in Indonesia, where it’s rumored to be in talks for a $1 billion investment.
Honor already has an established presence in Indonesia with an office and a local manufacturing partner. The company’s president of South Pacific operations, Justin Li, revealed that they plan to introduce a range of products, including a folding phone, in the medium to high-end segment. By the end of the year, Honor aims to offer around 30 devices, from phones to tablets, catered to the Indonesian market.
Despite the dominance of devices priced under $200 in Indonesia, the country presents significant growth opportunities as Southeast Asia’s largest and fastest-growing economy. Analyst Chiew Le Xuan from Canalys highlighted the vast potential for long-term growth in Indonesia.
The Indonesian market has seen a surge in smartphone shipments, with Oppo, Xiaomi, and Transsion, all Chinese companies, leading the pack. Oppo recently launched its flagship Find X8 phone in Indonesia, where it also operates a factory. Samsung and Vivo, both Chinese brands, also hold substantial market shares in the country.
Honor’s decision to enter the Indonesian market was not influenced by Apple’s absence, according to Li. The company has been closely monitoring the Indonesian market and is confident in its ability to compete. Honor plans to establish its presence in Indonesia by opening at least 10 stores this year and working with local retailers.
Outside of China and Japan, Apple’s sales in the Asia-Pacific region account for just under 8%. Honor, which was separated from Huawei in 2020, primarily focuses on the European and Southeast Asian markets. The company has indicated its intention to go public and expand its global footprint.