Business

Samsung claims 80% of local
Android market

Attractive model: A sales promotion girl shows off a Samsung Galaxy S III Mini smartphone during its launch in Jakarta on Tuesday. Samsung claims it has an 80 percent share of the Android-based smartphone market in Indonesia. (Antara/Paramayuda)
Attractive model: A sales promotion girl shows off a Samsung Galaxy S III Mini smartphone during its launch in Jakarta on Tuesday. Samsung claims it has an 80 percent share of the Android-based smartphone market in Indonesia. (Antara/Paramayuda)

PT Samsung Electronics Indonesia, the local arm of the Korean multinational electronics company, says that it supplies 80 percent of the Android smartphones used in Indonesia.

“Samsung, as a market leader, will continue driving the Android market,” Andre Rompis, Samsung Indonesia’s mobile division vice president, said during the launch of the Samsung Galaxy S III Mini in Jakarta on Tuesday.

Android comprised 56 percent of the Indonesian operating system market in 2012, according to the International Data Corporation (IDC).

The research firm, however, predicted that Android’s local market share would dip to 53 percent this year, as Windows 8 smartphones make headway in the Indonesian market.

The IDC noted that Samsung faced local competition from Nokia and Research in Motion (RIM), the makers of BlackBerry smartphones. All three firms were in the top five brands in Indonesia last year.

Andre said that while Samsung wanted to maintain its lead in the OS market, its dominance would not mean that the firm would only focus on Android. “Samsung is continuously working on many platforms,” he said.

Samsung introduced several Windows 8-based smartphones and notebook computers under the Ativ product line last year.

IDC said that the share of Windows in the local operating system market would increase to 9 percent in 2013, up from 2 percent last year.

Andre said that Samsung, via its Galaxy Tab product line, held around 50 percent of the local table market. “The remaining 50 percent is divided among other brands,” he said.

The Indonesian tablet market witnessed an influx of brands last year, most of which used Android.

Local brands priced around Rp 1 million (US$103.63) target the lower market segment, while Apple’s iPad, with prices above Rp 4 million, targets the upper rungs.

Andre said that Samsung would continue with its plan to occupy all segments of the mobile phone market this year, from feature phones to smart devices. “We want to make products that appeal to all types of consumers.”

He added that Samsung’s sales figures showed that the firm held about 70 percent of the feature phone market as well, he said.

Sales of affordable smartphones — priced less than Rp 1.5 million — were greater than those carrying middle and premium prices, he added.

“However, people are upgrading their feature phones to entry-level smartphones, or are even directly leaping to mid-priced devices,” he said. Andre said that Samsung would collaborate with mobile phone operators to drive smartphone use in the market.

However, he noted that a new regulation issued by the Trade Ministry would require Samsung to be more “prudent” in getting devices into the country.

The Trade Ministry issued stricter requirements for importing mobile phones and portable computers to prompt local firms to manufacture of devices.

He added that the regulation meant that device importers had to readjust their supply schedule to meet the new requirements, which included paperwork and inspections.

“However, the new regulation will not affect us financially,” Andre said.

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