Photo: CNBC Indonesia/Andrean KristiantoCNBC Indonesia/Andrean Kristianto

The Latest King Of Smartphones In Indonesia Has Emerged, Surpassing Samsung, Vivo, And Xiaomi

Friday, 22 Nov 2024

Oppo's affordable smartphones have successfully enabled the Chinese brand to dominate the mobile phone market in Indonesia and Southeast Asia.

During the third quarter of 2024, Oppo achieved a market share of 22%. In Indonesia, the company surpassed competitors such as Xiaomi, Transsion, Samsung, and Vivo in this ranking. Beyond Indonesia, Oppo also leads the markets in Thailand and Malaysia, while holding the second position in the Philippines and Vietnam.

According to a report by Canalys, Oppo ranks first in the Southeast Asian market with a market share of 21%, an increase from 18% the previous year. Shipments rose from 4 million units to 5.1 million units, reflecting an annual growth rate of 29%.

Canalys attributes Oppo's success to its rebranded entry-level models, specifically the A3x and A3.

The report also highlights the pricing of smartphones. The Southeast Asian market experienced a growth of 15%, with shipments totaling 25 million units. This growth was accompanied by a 4% decrease in average selling prices, largely due to the influx of new launches resulting in an oversupply of mid-range and low-end devices.

In the price segment of $100 to $300, vendors are striving to differentiate themselves from competitors through pricing and affordability. This has led to a heavy reliance on promotions and discounts to drive sales volume.

"Significant discounts on older models exacerbate the issue by creating price conflicts with the launch of new models," explained Canalys analyst Sheng Win Chow, as cited on Canalys' official website on Sunday, November 17, 2024.

He further noted that rising Bill of Material (BOM) costs and inflation in sales activities are eroding profitability. One strategy to address this is for companies to consolidate entry-level products to achieve lower costs and a clearer market segment, exemplified by the Oppo A3x, which streamlines offerings into a single model.


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