Honor’s logo
On January 7th, the Honor brand announced its plans to launch smartphones in Indonesia by the end of March, becoming the latest Chinese company to enter the market where Apple’s iPhone 16 is banned due to strict local investment regulations.
Previously, Indonesia had required that any phone sold in the country must have 40% of its components sourced locally. This regulation has prevented Apple from distributing its latest model in the archipelago nation.
Honor already has an office in Indonesia and is currently working with a local manufacturing partner, according to Justin Li, President of Honor’s South Pacific operations. He stated that Honor might launch up to 10 products, ranging from affordable to premium segments, including foldable phones.
The company also aims to produce around 30 devices, from phones to tablets, in the world’s fourth most populous country.
“Even though 80% of the market is dominated by devices priced below $200, Indonesia, as the largest and fastest-growing economy in Southeast Asia, still holds great potential for long-term growth,” said Chiew Le Xuan, an analyst from Canalys.
An Honor Experience Store in Malaysia
The Potential of the Indonesian Market
“Indonesia is emerging as a crucial market in Southeast Asia due to its rapid economic growth and expanding middle class,” said Chiew, emphasizing that the country accounts for 35% of the region’s total smartphone shipments and has the potential to serve as a strategic hub.
As of November, Oppo, Xiaomi, and Transsion – all headquartered in China – led the Indonesian market in smartphone sales, according to Canalys. In November 2024, Oppo held the global launch of its Find X8 model in Indonesia, where the company also has a factory.
Canalys data shows that Samsung ranked fourth in Indonesia with a 16% market share, tied with Vivo, another Chinese smartphone brand.
Excluding China and Japan, only a small fraction, less than 8%, of Apple’s sales come from the Asia-Pacific region.
Honor’s Strategy
Li stated that the decision to enter Indonesia was not influenced by Apple’s presence in the country and expressed confidence in Honor’s ability to compete. He mentioned that Honor has been observing the Indonesian market for years, doubling their expansion efforts in the last six months.
Honor intends to open at least 10 stores in Indonesia this year, in addition to distributing through a local retailer.
Outside of China, Honor’s products are mainly sold in Europe and select Southeast Asian countries. Their phones are not directly distributed in the US. The company revealed that, for the first time in December, more than half of their revenue came from outside China.
Honor, which is planning an IPO, separated from Chinese telecom giant Huawei in November 2020 after its parent company was impacted by US sanctions. Huawei stated that it does not hold any shares in Honor or participate in its business decisions.
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