While Apple faces Indonesia ban, Chinese smartphone maker Honor enters

BEIJING – Honor spinoff Huawei announced Tuesday that it plans to launch smartphone sales in Indonesia by the end of March, becoming the latest Chinese company to enter a market that has banned Apple’s iPhone 16 above the needs of domestic production.

Indonesia requires that for smartphones sold in the country, 40% of its components must be of domestic origin. This rule prevented Apple from selling its new phone in the market, where it is declared negotiated a $1 billion investment.

Honor has an office in Indonesia and is working with a local manufacturing partner, Justin Li, the president of the Chinese company’s South Pacific operations, told reporters last week. He said that a foldable phone will be among the first set of Honor products sold locally – 10 items in the middle to high-end segment.

The company aims to offer about 30 products from phones to tablets in Indonesia by the end of the year. The Southeast Asian country is home to the world fourth country by populationjust behind the United States.

“Although 80% of the market is dominated by devices priced below $200, as the largest and fastest growing economy in Southeast Asia, Indonesia presents immense potential for long-term growth,” Canalys analyst Chiew Le Xuan said in an email.

“Indonesia is emerging as a key market in Southeast Asia, driven by rapid economic growth and an expanding middle class,” Chiew said, noting that the country accounts for 35% of smartphone shipments in the region and can serve as a regional strategic center.

As of November, Oppo, Xiaomi and Transsion – all based in China – occupy the top three spots in Indonesia for smartphone shipments, according to Canalys. Shenzhen-based Oppo in November held its own global launch for its flagship Find X8 phone in Indonesia, where the company also has a factory.

Samsung ranked fourth in Indonesia with a 16% share, tied with Vivo, another Chinese brand, Canalys data showed.

Excluding China and Japan, just under 8% of Apple’s sales comes from Asia-Pacific.

Li said that the decision to enter Indonesia was independent of Apple’s presence in the country, and he was confident in Honor’s ability to compete. He said Honor had been eyeing the Indonesian market for years, before doubling expansion efforts in the last half of the year.

While he declined to share a current breakdown of Indonesian to Chinese staff, Li said Honor is still hiring in the country and aims to have a predominantly local staff in the future.

Honor plans to open at least 10 of its own stores in Indonesia this year, in addition to selling through a local retailer, Li said.

Outside of China, Honor sells mainly in Europe and parts of Southeast Asia. Its phones are not sold directly in the U.S. The company said in December that more than half of its sales came from outside China for the first time.

Honor, what is it plan to go publicwas divested from the Chinese telecommunications giant Huawei in November 2020 after the parent company was hit by US sanctions. Huawei said it doesn’t have any actions in Honor or have involvement in business decisions.